Looking to properly insure your own business?
When you start your own business, you need to ensure you’re properly insured. However, there’s no such thing as a ‘standard package’ of insurance for start-ups. Every business is different and so are the risks involved. Read on to get an idea of the type of insurance you need to arrange.
If you’re having trouble differentiating between what exactly you need to have and what you don't, make an appointment and get free insurance advice from our experts.
First take out insurance that is required by law
Protection against malpractice claims
This type of cover is mandatory for certain professions, but not for others. Either way, it’s highly advisable as every business runs risks and you could be held liable if you cause loss or damage while doing your job.
Therefore, we would advise you to take out either third-party liability insurance or professional liability insurance. You’ll then be covered in the event someone files a claim against you. Which type of liability cover you need will depend on your business’s activities.
- If your business makes products (e.g., a factory, agricultural business or electrician), sells products (e.g., a shop or wholesaler) or provides a service (e.g., a hairdresser or beautician), you need to take out third-party liability insurance. This type of insurance covers bodily injury and material damage caused to third parties (including customers) by your company’s operations.
- If your company mainly performs intellectual work (e.g., accountants or consultants), you require professional liability insurance. This type of insurance covers the risk of liability for financial loss resulting from your intellectual activities, such as advice you have given.
Insure company cars and private vehicles you use for business purposes
- Car insurance (third-party liability) is compulsory. Make sure your company vehicles are also covered for loss or damage (due to accidents, theft or breakdown).
- If you’re going to use your own private car for work, don’t forget to update your personal insurance. Find out more about how to insure your company vehicles.
Employing staff compulsory industrial accident insurance
If you have one or more employees, you are obliged to insure them against accidents at work, even if they’re only employed for a day.
Protect your income now and in the future
Ensure you have a source of income in the event of work disability and illness
You can never rule out becoming incapacitated for work due to illness or an accident. With guaranteed income insurance, you receive a sum of money each month to top up the benefit paid by your health insurance fund.
Think about your pension too
Although the minimum pension for a self-employed person is equal to that for an employee in the private sector, the average state pension is unfortunately significantly lower in comparison.
If you’ve been thinking ahead, you’ll have already started contributing to a supplementary pension saving scheme from a young age. This can be done either as a self-employed person (second pillar) or on an individual basis (third pillar) and provides you with a tidy sum for later and attractive tax breaks along the way. Check out all the options.
Other important types of insurance cover
Cover your hospital expenses by arranging hospitalisation insurance
- If you’re operating as a sole trader, hospitalisation insurance for you as a self-employed person is identical to hospitalisation insurance you can take out as an individual.
- If you run a company, make sure you’re covered by the group hospitalisation insurance scheme.
Don’t forget about your liability as a company director
The new Companies Act makes it easier for those starting out in business to set up a private limited liability company (BV/SRL) instead of a sole-trader business. But did you know that as a company director, you can be held personally liable if you make a mistake or error?
Directors’ and officers’ liability insurance covers you in such a situation, so you don't have to pay out of pocket for any claims.
Protect your business premises, including when your work is home-based
- Definitely make sure to insure your business premises and business assets. Home insurance covers you not only for fire, but also for water damage, natural disasters and theft.
- If you work in a self-employed capacity from home, don't forget to take out additional cover under your personal home insurance policy.
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