Arrange business insurance
If you start and run a business, it is a good idea to take out insurance. By doing so, you protect yourself against various business risks. For example, loss of income, liability, and damage to your business. Find out what the most important kinds of insurance are for your business and what you need to keep in mind.
Compulsory insurance for entrepreneurs
For every person living in the Netherlands, 2 insurances are mandatory:
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 indemnity insurance (beroepsaansprakelijkheidsverzekering) is required by law for these professions:
- Financial advisers
- Lawyers
- Accountants
- Civil-law notaries
- Architects
Your sector organisation or client(s) may may also require that you have 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
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 a:
- voluntary insurance with the UWV (only for starters).
Read more about loss of income insurance for self-employed professionals
Term life insurance: income after death
With term life insurance (overlijdensrisicoverzekering) you can ensure that your family will have sufficient income after your death. Your family members will then receive a benefit payment over a certain period of time.
With damage insurance you are covered against the risk of damage to your property. Such as damage to:
- office equipment
- goods
- inventory
- your business premises
There are many kinds of damage insurance that could be useful to you as a business owner:
Goods insurance
Goods insurance (goederenverzekering) 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
Inventory insurance (inventarisverzekering) 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: when you own business property
Building insurance (opstalverzekering) covers damage to your business premises. For xample, by fire, water damage or storms. You must be the owner of the premises and not a tenant. Buildings insurance falls under the category of fire insurance. You can extend it to also include goods, inventory and stock.
Business interruption insurance
Do your company's operations come to a standstill? For example, after fire, water damage, storm, vandalism, or theft. Business interruption insurance (Bedrijfsschadeverzekering) covers you against loss of turnover
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: if you make a mistake
Professional indemnity insurance (beroepsaansprakelijkheidsverzekering) covers you if you make mistakes within your work. For example, if your client loses a lot of money because you gave the wrong advice. You will then be liable and must pay for the losses. This insurance helps you cover the costs.
Usually you only have cover for the financial loss. You can extend this insurance if you also want to be covered for damages arising from personal injury.
General terms and conditions
Make sure your general terms and conditions are in line with your professional liability insurance.
Business liability insurance: if you cause damage
Business liability insurance (bedrijfsaansprakelijkheidsverzekering) covers damages in case you or your employee cause an accident. If you knock over an expensive vase at a client’s premises, business liability insurance will pay the damages to that client.
Please note: this business liability insurance does not cover damages caused by mistakes within your profession or business. For that, you need professional liability insurance.
Legal expenses insurance: in case of a conflict
With business legal expenses insurance (rechtsbijstandverzekering), you are covered for legal assistance in the event of a conflict with suppliers, employees, or customers.
Director’s liability insurance
A director’s liability insurance (bestuurdersaansprakelijkheidsverzekering) 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.
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
Absenteeism insurance (verzuimverzekering) 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.
Industrial accident insurance
A collective work accident insurance (arbeidsongevallenverzekering) 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
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.
Do you do business with foreign countries? Cargo insurance prevents disputes about damage to your goods during transport.
Credit insurance
With credit insurance, you cover the risk of a customer not paying. Your invoices will then be paid by the insurer.
Partner insurance
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
Cyber insurance (in Dutch) partially covers the financial damage caused by a virus, hack, data breach, or other type of cyberattack.
Just like a business, you can insure an association or foundation against risks. With a directors' liability insurance you protect all directors of your association or foundation against claims for damages after a managerial error. For damage to persons or property, you additionally need a business liability insurance.
Does your association or foundation own or rent a building for its activities? If so, damage insurance policies can also be useful, such as buildings insurance or inventory insurance.
Volunteers insurance
You can take out volunteer insurance for volunteers working for the foundation or association. Umbrella organisations such as sports federations often offer insurance for their affiliated foundations, associations, and their volunteers and members.
In addition, many municipalities have taken out collective volunteer insurance. This applies additionally to all volunteers who are active in the municipality or for an organisation in the municipality. The volunteer insurance covers damage caused by volunteers, but also accidents or damage to volunteers' belongings, for example.
Have the correct business activities registered with KVK
When you register with the Chamber of Commerce, the Chamber will assign you one or more SBI codes. The SBI code shows your firm's line of work, your business activities. Insurers use the SBI code when setting the premium and cover. Do you carry out work that is not covered by your SBI code? If so, the insurance may not provide cover. Therefore, you should report any new activities via My KVK and to your insurer.
Do the KVK Insurance Check
The KVK Insurance Check helps you choose your insurance policies. You answer 5 questions about your business situation. Then you will get an overview of the insurances that are compulsory and useful for you.Do the KVK Insurance Check
Insurance premiums are usually tax-deductible
The costs of business insurance are business expenses, and you can deduct them from your profits for income tax purposes. Only the premium for life insurance does not count as a business expense, so you cannot deduct it.
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).
Find out which legal structure suits your 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.
Read how to draft general terms and conditions.
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.