What type of insurance do I need for my self-employed business?
Self-employed people often ask the question, “What insurance do you 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. If you know what risks you run as an entrepreneur, you can take measures to prevent them. Or at least limit it. You can also insure the rest of your risks. You have many things to think about when you’re just starting as a freelancer.
We have compiled a list of self-employed insurance policies that are the most popular among entrepreneurs. If you are already a self-employed person, it is wise to check whether you are sufficiently insured for the work you perform. For advice on the different types of self-employed insurance policies, you can contact FreshZPP’s partner network.
Health insurance self-employed person
For the time being, the compulsory insurance for the self-employed is health insurance. Everyone in the Netherlands must have health insurance. 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. Were you collectively insured for healthcare through your employer? You can continue this health insurance, but not the collective. This one expires of course. You can also use other collective self-employed insurance policies to get healthcare.
Liability Insurance self-employed
A liability insurance policy (AVB), is essential. There are two types of liability you can deal with as a self-employed individual. The professional and business liability insurance zzp. Contrary to popular belief, private third-party liability insurance does not reimburse for damage that you cause to others from your company. A business liability insurance zzp is therefore necessary.
Business liability insurance self-employed person
A business liability insurance zzp (AVB) covers damage that you cause to others during 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. You will be responsible financially for any injury or damage that results from this accident if you do not have business liability insurance.
Professional liability insurance self-employed person
Professional liability insurance for the self-employed is not mandatory. 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. Think, for example, of a parking garage that collapses due to a calculation error by the architect. 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 for self-employed in the construction sector
A CAR insurance self employed person is the best choice if you are involved in construction work. 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. For example, if you build a load-bearing wall incorrectly and part of the building collapses, the costs are a lot higher than just 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 CAR and AVB insurance? An AVB covers general liability and damage to client’s equipment. CAR insurance is required for consequential damage to your construction project and your own materials. Before you begin a construction assignment, ensure that you have the appropriate self-employed insurance.