If you are an entrepreneur, it is important to cover yourself against risks that you may have to deal with. Luckily, there are insurances for a broad range of scenarios. This applies to both yourself and your company. We list the most important insurance policies for you and your company.
By taking out insurance, you limit your risks. Insurances you have taken out privately usually do not reimburse in case of business problems. Most insurances are not compulsory, except health insurance. And do you have a company car? If so, third-party car insurance is compulsory. There are further compulsory insurances for some professions.
For your company
With these insurances, you avoid having to pay for claims yourself:
Business liability insurance
You have opened a beautiful shop, but a customer trips over your rug. Or you are an adviser and during your presentation, a cup of tea falls on a laptop that is not yours. You want to be insured for these types of damages.Business liability insurance covers the damage you cause to others. Your company's liability is not covered by your private liability insurance.
Professional indemnity insurance
Professional indemnity insurance (BAV) covers damages caused by professional misconduct. This is mandatory for certain professional groups, such as lawyers, doctors, architects, and accountants. Taking out a BAV is also wise for other professions. For example, for consultants or advisers. If you make a professional mistake, your client could suffer substantial damage.
On top of business risks (Bedrijfsrisico’s de baas)
Legal assistance insurance
Unfortunately, many entrepreneurs will need to deal with a legal conflict at some point. Legal assistance insurance offers professional legal support, such as costs for legal advice, costs of litigation and court costs and attorney's fees. Often the conflicts have to do with unpaid bills. So, make sure that collection assistance is also included in your legal assistance insurance.
Cyber insurance
Cyber insurance protects against costs you have to incur if you become a victim of cybercrime. Think of a virus, hack, or ransomware. Most cyber insurance policies cover more than just business losses. Often, you are also insured for third-party damage. That is the damage incurred, for example, by a customer or business partner due to cybercrime at your company. And the cost of legal help you might need.
Buildings, goods, and inventory insurance
Are you renting an office space, commercial space or retail premises? Or do you own business premises yourself? Then fire or a burglary can cause damage. You might lose your stock, for example. You can insure your business premises via a building insurance policy.
The belongings and equipment for your business are insured via inventory insurance or business contents insurance. You are then covered for damage to items such as tools, machines, computers, and electronics. For example, if damage is caused by fire, storm, water or theft.
You insure your trading stock with goods insurance. Some insurers offer inventory and goods insurance as a single product. Do you work from home? Then ordinary contents insurance is usually sufficient. Check with your insurer.
Business interruption insurance
Suppose your company comes to a standstill due to fire or another cause. Your turnover will then come to a halt, but your personnel costs and rent will continue. The compensation of the business interruption insurancecovers the fixed costs and any lost profits so that you can continue your business.
Business partner insurance
If you work together in a general partnership or in another legal form, you form a team together. You reinforce each other and you work together on assignments. If your business partner dies, inheritors can claim part of the company. The business partner insurance then pays out a sum of money to the inheritors, buying out the part of the company that belongs to the deceased business partner. This way, the business can continue uninterrupted.
Insurance for yourself
Disability insurance
If you work as a self-employed person, you will not receive any benefits in case of illness or an accident. A few days or weeks of not working due to illness may be something you can make up for with savings. But what if you are sick for a longer period of time or even become incapacitated?
With disability insurance (AOV), you ensure that you still have income in such cases. But many self-employed people find an AOV too expensive. Did you know that there are more options to insure yourself of an income? Apart from taking out an AOV, you can:
- join a donation circle
- join a crowdsurance platform
- keep your disability insurance through UWV
Arbeidsongeschiktheid | Bedrijfsrisico's de baas
Pension
Everyone in the Netherlands is entitled to a national old age pension (AOW) from a certain age. If you do not arrange anything else as an entrepreneur, you will only receive AOW. Do you want to build up pension as an entrepreneur? Then you have to arrange this yourself. Ask an insurance advisor or bank about the options, such as bank savings, single premium policies, and life insurance.
If you start a business from employment or from a situation in which you are on benefits, inquire with your pension insurer about the possibilities of continuation.
Mandatory pensions apply to a limited number of sectors and professional groups. For example, if you are a painter, you are obliged to pay pension premiums to the pension fund for painting businesses ('Bedrijfspensioenfonds Schilderbedrijven').
Term life insurance
When you die, the financial consequences can be significant for those left behind. If you work as an employee, your partner and children will receive a survivor's pension in the event of your death. Entrepreneurs are not entitled to this scheme. A term life insurance policy ensures that your partner and children receive benefits for a certain period of time.
To insure or not to insure?
Make a good assessment of the risks you face as an entrepreneur. Which insurances are really necessary? Banks, insurance companies, and trade associations often offer 'business packages' that include the most common business insurances. Compare premiums and insurance coverage and, if necessary, seek advice from an independent adviser.
Use the KVK Insurance Check to find out which insurances are useful for your business.
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