For whom is absenteeism insurance useful?
If you run a business with staff, you run the risk of an employee becoming ill. This can disrupt your business operations, especially if you have a small business. The costs of an absent employee can quickly add up: one day of absence may cost you at least €250. You must continue to pay your sick employee at least 70% of their wages for 2 years. The costs for guidance and reintegration have to be paid by you as well.
Is absenteeism insurance mandatory?
Absenteeism insurance, also known as sick leave insurance, is not mandatory.
What is usually insured with absenteeism insurance?
- the risk of your company running into financial problems due to illness and occupational disability of your employee
- continued payment of at least 70% of wages for the first 2 years
- prevention, counselling and reintegration
Most insurances include a deductible excess (eigen risico, in Dutch). You may have to pay for the first days that your employee becomes ill. Sometimes there is a maximum to what the insurance pays out.
Read the policy conditions
What is covered by the sick leave insurance depends on your insurance company. This are written in the policy conditions, which you should always read carefully. You can ask an independent insurance adviser for advice.
What is usually not insured?
- employees who fall ill before the start date of the insurance
- a director or major shareholder (DGA) who falls ill
- an employee who intentionally becomes incapacitated for work
- someone who is not an employee of your company, for example your partner or a self-employed professional
Insurance for self-employed professionals without staff
Are you a self-employed professional without staff? Then you are not protected against loss of income if you become ill or have an accident. You can insure your income with occupational disability insurance (arbeidsongeschiktheidverzekering, AOW), or with an alternative such as Crowdsurance. A well-known form of this is the bread fund, but there are more and more alternatives. They protect you against loss of income. Read more about insurance for self-employed professionals.
Insurance for directors or major shareholders (DGAs)
DGAs are not covered by absenteeism insurance. Instead, you have to take out occupational disability insurance.