Insurance for Your Small Business

Before you choose business insurance as a starting entrepreneur, you assess the risks you will run as an entrepreneur. How will you manage these risks? You can keep a buffer for some risks, but often you also need business insurance.

Then the question is, which insurance policies for self-employed persons suit you? You decide that yourself because every starting entrepreneur is unique. Don’t feel like or don’t have the time to read this article? This tool lets you quickly calculate which insurance policies suit your needs and risks.

 Liability insurance

Where work is done, mistakes are sometimes made. That can happen to anyone, including you. You, your employees, or your products can cause injury (to persons) or material damage (to property) and then be held liable.

Company liability

Company liability is a business insurance policy. Private liability insurance does not reimburse damage you cause to others from your company. Most entrepreneurs, therefore, opt for business liability insurance right from the start.

Professional liability

For example, do you work as an architect, engineer, lawyer, marketing consultant, or accountant? Then your client can hold you liable if an error in your advice or calculation leads to direct financial loss. You insure this risk with professional liability insurance.

Disability insurance, is it necessary?

To assess whether disability insurance is an intelligent choice, first list what it means if you cannot work for a long time.

• Which costs continue, and on which income can you still count?
• Do you have enough reserves on hand?

Many entrepreneurs think that an AOV is expensive, but you partly determine how high the premium is. The exact amount of the compensation depends, among other things, on your age, profession, and the amount you want to insure.

Legal expenses insurance

Any entrepreneur can have a conflict with customers, employees, or suppliers. For example, the agreements are unclear afterward or because the accounts remain open even after several reminders.

Many starting entrepreneurs, therefore, take out business legal assistance insurance. You will get expert help and advice to resolve a business conflict with an eye for the business relationship, which you naturally want to keep.

Lawsuit

You will receive expert legal assistance if the conflict ends in a lawsuit. For example, the legal costs or costs of a bailiff or lawyer are also reimbursed. Check carefully what maximum amount your insurance will pay for this and which conditions apply to you. 

Taking out legal expense insurance: When is it wise?

Business legal assistance for starting entrepreneurs: what you can expect

Good to know as an entrepreneur, you need business legal expenses insurance. Business conflicts are not insured with your private insurance.

Inventory and Inventory insurance

The stuff you sell, your stock, your parts, building materials, and the office furniture are annoying if something happens to it! With inventory and stock insurance, you ensure your stock and business assets against damage from fire, burglary, theft, weather, or vandalism.

Difference between inventory insurance and Inventory insurance

These two insurance policies for entrepreneurs are similar but not the same. For example, stock insurance ensures your stock, raw materials, and consumables. The inventory insurance provides, for example, your laptop, desk, and cash.

Storage stock and inventory

Good to know: if you store stock or items elsewhere, for example, in rented storage space, they are insured under your inventory and inventory insurance. But if you keep your reserve or belongings outside on your property, they are only insured against fire damage.

Please note: if you want to ensure your laptop, smartphone, or other portable electronics while on the road, you need extra electronics insurance.

Business stagnation insurance

Your company can come to a partial or complete standstill after a fire, storm, burglary, theft, collision, or environmental or water damage. A closed access road due to a fire in the area can also be disastrous for turnover. The longer it takes to return to work, the more income you miss.

Entrepreneurs who opt for business interruption insurance ensure their gross profit if their business comes to a standstill due to such an event. They are also assured of income during the recovery phase.

Health insurance

Health insurance is compulsory for everyone in the Netherlands, even if you are an entrepreneur. In paid employment, the employer pays the employer’s tax. Now that you are an entrepreneur, you pay an income-related contribution based on your taxable income (the Health Insurance Act premium).

Which health insurance is best for every entrepreneur is different?

Pension insurance

As an entrepreneur, you are only entitled to AOW after your AOW age (in 2021: 66 years + 4 months). You are responsible for building up a supplementary pension yourself.

Every pension advisor will advise you to list which costs and income you can count on after retirement.