Entrepreneurial risks
As a self-employed person you encounter business risks while performing your work. It can happen to anyone: an accident, burn-out or illness. Only when you work as an independent entrepreneur and are unable to carry out your work for an extended period can that have financial consequences. Fortunately, as a self-employed person you can arrange a number of things. A good business insurance policy offers a solution.
Taking out an insurance policy can give you peace of mind and financial protection if something goes wrong during your work. It is important to make the right choice when you choose an insurance policy. These are the 3 most important business insurances for self-employed people:
1. Occupational disability insurance
An accident can sometimes be just around the corner. Cliché, but true. Think of breakdowns in traffic or a long-term illness. It's a good idea to think about what it means if you become unable to work. What will you do about work then? And will you still be able to make ends meet financially? It's sensible to take out disability insurance (AOV). From the government you receive virtually no support. And in the first two years of illness you, as a self-employed person, receive no continued payment of wages and cannot enter the WIA. You then only have the right to social assistance. With an AOV you insure part of your income against disability. Your income is continued when you are unable to work due to illness or an accident. If it should be the case that, due to medical problems or age, you fail to manage to take out a regular AOV, then you can voluntarily insure with the UWV for sickness and incapacity for work.
2. Liability insurance
A private insurance policy does not cover damage that you as a self-employed person (zzp’er) cause during your work. It is therefore wise to take out liability insurance, because no matter how careful you are, an unpleasant situation can always occur. You spill a cup of coffee over a colleague’s laptop or cause financial loss by giving incorrect advice. It is important that you are insured for that. You can arrange this with a business liability insurance or a professional liability insurance. This is the difference:
o Business liability insurance (AVB).
As a self-employed person, you are covered by business liability insurance for material damage you cause while performing your work. For example, damage to a laptop.
o Professional liability insurance (BAV).
A professional liability insurance covers the financial loss that arises from professional errors. This insurance is useful for professionals in advisory services, such as IT specialists and accountants. Incorrect advice, negligence, or mistakes can cause financial loss. This insurance covers you against claims from clients who say they suffered financial loss due to your errors or negligence in your work.
3. Legal expenses insurance
Of course you hope it never happens, but as a self-employed person you can become involved in a business dispute. For example, a client may not pay the invoice. That's when it's useful to have taken out business legal expenses insurance. With legal expenses insurance you are entitled to expert legal help and advice in a difficult situation. That way you can be sure you'll get your case resolved in the best way or prevent a dispute in the first place.
