What type of insurance do I need for my self-employed business?
A frequently asked question for self-employed people is “What insurance do I need as a self-employed person?”. Whether you are an independent project manager or a freelance carpenter, discover that self-employed insurance policies are important. You can reduce the risks that you face as an entrepreneur by knowing what they are. You can limit it. You can insure the remaining risks. You have many things to think about when you’re just starting as a freelancer.
To save time, we have listed the self-employed insurance policies that are most often chosen by starting entrepreneurs. If you are already a self-employed person, it is wise to check whether you are sufficiently insured for the work you perform. FreshZPP’s network of partners can provide advice on the various types of self-employed insurance policies.
Health insurance self-employed person
For the time being, the compulsory insurance for the self-employed is health insurance. Health insurance is compulsory for everyone living in the Netherlands. Even if you are an independent entrepreneur. In paid employment, the employer pays the employer’s tax, as an entrepreneur you pay an income-related contribution. This contribution is based on your taxable income, the Health Insurance Act premium. Did you and your employer collectively have healthcare coverage? Then you can let this health insurance continues, but without the benefit of the collective. This one expires, of course. You can also make use of other collective self-employed insurance policies for healthcare.
Liability Insurance self-employed
A liability insurance (AVB) is indispensable. As a self-employed person, there are then two forms of liability that you can have to deal with. The professional and business liability insurance zzp. Contrary to popular belief private third-party insurance does not cover damage you cause to other employees of your company. Therefore, a business liability insurance zzp must be taken.
Self-employed person Business liability insurance
A business liability policy zzp (AVB), covers damage you cause others while doing your work. Think, for example, of a customer who stumbles over your paint supplies and is in plaster for months. You might deliver the washing machine and accidentally bump into a wall-hunging painting. Without business liability insurance, you will be responsible for the financial consequences of this damage or injury.
Professional liability insurance self-employed person
The self-employed do not need professional liability insurance. However, clients are increasingly requiring self-employed workers to have professional liability insurance. This insurance may also be required by a trade association. Incorrect advice can cause financial damage to professional groups like accountants, architects, and consultants. For example, a parking garage that is damaged by an architect’s calculation error could collapse. Or an accountant who makes a mistake as a result of which the tax return is not correct. In such cases, professional liability insurance is definitely recommended.
CAR insurance self-employed for the construction sector
If you carry out construction work, a CAR insurance self-employed person (Construction AllRisk) is the right choice. You insure yourself against any consequential damage of the construction work carried out. Structural work is all work that you perform on the construction of a building. This includes installing load-bearing walls and roofs, as well as supporting and supporting beams. If you build a load bearing wall incorrectly, and a part of the building falls, the cost will be much higher than simply installing a new load bearing wall. All damage resulting from this error is called consequential damage. This consequential damage can be insured with a CAR insurance policy zzp. Clients require that you have CAR insurance zzp if you are a self-employed contractor. What is the difference between an AVB and CAR insurance? An AVB covers general liability and damage to client’s equipment. You need CAR insurance for consequential damage to the construction project itself and your own materials. Before you begin a construction assignment, ensure that you have the appropriate self-employed insurance.