What insurance do I need as a self-employed person?
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. If you know what risks you run as an entrepreneur, you can take measures to prevent them. 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.
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. Health insurance is compulsory for everyone living in the Netherlands. Even if you are an independent entrepreneur. While paid employment pays the employer’s taxes, entrepreneurs pay an income-related contribution. This contribution is based upon your taxable income and the premium under the Health Insurance Act. 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 make use of other collective self-employed insurance policies for healthcare.
Liability insurance self-employed person
A liability insurance policy (AVB), is essential. 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. A business liability insurance zzp is therefore necessary.
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. 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
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. There are professional groups, such as architect, accountant, or consultant, where financial damage can be caused by incorrect advice. 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
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. We refer to all damage around this as 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 provides cover for general liability and damage to the client’s equipment. You need CAR insurance for consequential damage to the construction project itself and your own materials. Therefore, make sure that you take out the necessary self-employed insurance before you start working on an assignment in the construction world.