Arrange business insurance
If you start and run a business, it is a good idea to take out insurance. By doing so, you cover yourself against various business risks. For example, against damage to goods, legal conflicts, or the illness of your staff. In this overview, you will find out about the most important insurances.
Compulsory insurance for entrepreneurs
Like every Dutch person, you are obliged to take out health insurance. National insurance is also compulsory for everyone living or working in the Netherlands. As a self-employed professional, you pay the national insurance contributions through your income tax.
There are no other insurances that are compulsory for all entrepreneurs. But you must take out insurance if you have a company car. And the bank may require you to take out building insurance if you buy business premises.
Sometimes liability insurance is compulsory
Professional liability insurance (beroepsaansprakelijkheidsverzekering, BAV) is required by law for these professions:
- Financial advisers
- Lawyers
- Accountants
- Civil-law notaries
- Architects
Trade organisations, clients, and intermediary agencies may also require professional liability insurance or business liability insurance (bedrijfsaansprakelijkheidsverzekering).
Staff
Do you have staff? If so, you pay employee insurance and national insurance contributions for each employee through payroll taxes. Read more about the premiums you pay for your staff.
Insurance against loss of income (incapacity for work)
Are you unable to work due to illness, incapacity for work, or other circumstances? As a self-employed professional, you can insure your income in various ways. For example, with disability insurance, crowdsurance, a donation circle, or voluntary insurance with the UWV (only for starters).
Read more about loss of income insurance for self-employed professionals.
Insurance against business risks
Your stock is destroyed by fire, a claim for damages from an angry client, or an accident involving an employee. You can insure against many risks. Read which insurances are available and what they cover.
Damage insurance
These damage insurance policies cover you against risks. Such as damage to office equipment, goods, inventory, or your business premises.
Business interruption insurance covers you against loss of turnover if your company's operations come to a standstill. For example, after fire, water damage, storm, vandalism, or theft.
Goods insurance insures you against damage to your goods. That is your trading stock, including the raw and supporting materials you use to make your products. For example, semi-finished products, finished products, cleaning agents, fuels, and packaging.
Inventory insurance is for damage caused by fire or water, burglary, or vandalism to business assets, usually including electronics and computers. You can also include coverage for inventory in your building insurance or goods insurance.
Building insurance covers damage to your business premises. You must be the owner of the premises and not a tenant. Damage can occur due to a wide range of causes. Buildings insurance falls under the category of fire insurance. You can also include goods, inventory and stock in this as options.
Liability insurance policies
These insurance policies cover you for the risk of liability. For example, if you break something at a customer’s premises. Or if you give the wrong advice and your client suffers a financial loss as a result.
Professional indemnity insurance covers you for mistakes or negligence within your profession or service. For example, if your client loses a lot of money because you gave the wrong advice. You will then be liable. Often, you only have cover for pure financial loss. You can extend this insurance with personal injury,
Business liability insurance covers damages in case of accidents. If you or your employee knocks over a vase at a client’s premises, business liability insurance will pay the damages to that client. This business liability does not cover damages caused by mistakes within your profession or business. For that, you need professional liability insurance.
With business legal expenses insurance, you are covered for legal assistance in the event of a conflict with suppliers, employees, or customers.
A director’s liability insurance protects all managing directors of your organisation, association, or foundation against claims for damages after an administrative error. For damage to persons or property, you need business liability insurance.
Staff insurance
If you employ staff, this creates additional risks for your business. Your employee may fall ill for a long time or have an accident at work. This can cost you a lot of money. Staff insurance covers these risks.
Absenteeism insurance covers you against the costs if your employees fall ill. The insurance pays your employee and also covers the costs of reintegration and absence counselling.
A collective work accident insurance provides financial compensation if your employee dies or becomes permanently disabled due to an accident. For example, due to an accident while working or commuting. A comprehensive insurance package covers you against all accidents, 24 hours a day. It is not compulsory by law to take out a collective work accident insurance. But there are collective labour agreements (CAO) that make it compulsory. So, check the CAO for your business sector.
Survivor’s insurance (nabestaandenverzekering) compensates a large part of your employee's income when they die. Your employee's partner (the survivor) will receive a benefit. By doing so, you not only cover a risk for your employees, you also offer a valuable secondary benefit.
Insurance for international trade
Do you do business with foreign countries? Cargo insurance prevents disputes about damage to your goods during transport.
Other insurances
With credit insurance, you cover the risk of a customer not paying. Your invoices will then be paid by the insurer.
Do you work with others in a general partnership (VOF) or does your business have multiple owners? With business partner insurance (compagnonverzekering), an amount will be paid out in the event of your business partner's death. With this, you can, for example, take over the deceased partner's share in the business.
Cyber insurance partially covers the financial damage caused by a virus, hack, data breach, or other type of cyberattack.
Other ways to reduce risks in your business
Besides taking out insurance, there are other ways to reduce the risks in your business.
There are business structures with and without legal personality:
- In a business structure without legal personality, you are personally liable for the debts of your business. Examples of these legal structures are eenmanszaak (sole proprietorship) and VOF (general partnership).
- With a business structure with legal personality, you keep your private assets and business assets separate. Think of a BV (private limited company) or NV (public limited company).
General terms and conditions define the rights and obligations of you and your customer. They include, for example, agreements on transport, delivery time, guarantee, and liability.
Factoring or reverse factoring is also called debtor financing. For a fee, your invoices are paid by a bank or factor. They then handle the payment with your customer.
Questions relating to this article?
Please contact the Netherlands Chamber of Commerce, KVK