As a self-employed student, it is not easy to close the right insurances on the one hand and to avoid starting work underinsured on the other.
We have listed the sense (and nonsense) of the most common insurances as an entrepreneur.
Civil liability insurance 👥
You cause accidental damage to goods or people while carrying out your self-employed activities. An accident(s) can happen quickly, but you can also be insured for it.
Then you end up with this classic, civil liability (BA).
Pop in to your insurer, let them know what self-employed activities you are engaged in and they will deliver you a tailor-made proposal.
Required? Certainly not (subject to a few exceptions below). Still, we’ll give you a tip that civil liability insurance – depending on your activities, of course – is not too expensive.
Exceptions: Some sectors fall under a professional institute, think architects or doctors, for example. They are required to take out civil liability insurance through their professional institute.
Fire insurance 🔥
Chances are that, as a student, you still live at home and are therefore covered by your parents’ fire insurance. Nevertheless, it may be interesting to contact the broker here too and discuss the cover that is already in place.
As a self-employed (student) person, you may need to purchase quite a bit of equipment for your self-employed activities, with or without a hefty price tag. Consequently, your parents’ classic fire insurance might not be enough to effectively cover all that pricey equipment. Time to sit down with the broker and receive on updated proposal.
Required? Certainly not for your self-employed activities, but sometimes a small addition to the already existing fire insurance can also help insure your company’s more expensive equipment.
Do you have publicly accessible business premises? Then be sure to contact your broker, as there are required insurances to close for publicly accessible business premises.
Insurance guaranteed income💶
Here, as a student, you should pay no attention.
Because presumably, as a student, you will not be financially dependent on income from your self-employed activities. Hence, insurance to guarantee your income in case of serious illness would be overkill.
At least know that they exist. Always interesting if you take the step to self-employed in main occupation in the future.
Supplementary pension accrual 🧓
As a student, you shouldn’t be here yet!
But know that later, as a self-employed person in main occupation, there are lots of ways to boost your pension. Fiscally interesting ways too, think for example of a VAPZ (Free Supplementary Pension Accumulation for the Self-Employed) or POZ (Pension Agreement for the Self-Employed).
In between, another general message: as a self-employed person in main occupation, you also build up a statutory pension! The government has even made great efforts to equalise the statutory pension of the self-employed with that of employees.
But good, that’s not for now.
Finish those studies first and then take the plunge into a main occupation?😉
Turnover insurance
Turnover insurance can be a lifesaver if one of the key people in your company drops out. It pays an interest to offset turnover losses. Premiums are tax-deductible, but the benefits received on it are taxable.
Bankruptcy insurance
Bankruptcy insurance is a lifeline for any self-employed person. It provides monthly benefits for limited periods if you go bankrupt. The premiums for this insurance are tax deductible, but keep in mind that the benefits are taxable.
Ready to fly in as self-employed? 🚀
Eager to learn more about entrepreneurship as a student? Find out all about it in our free quick course.
Then you can get started with Dexxter, the accounting programme for the sole proprietor entrepreneur who wants to take charge of his/her own bookkeeping.
Still have questions? Perfectly normal, that’s why we built the Dexxter community. This is an area in the application where Dexxter entrepreneurs can ask questions to other entrepreneurs and get answers.
You ask your questions to other sole proprietors, so you gain experience from entrepreneurs who have already overcome your obstacles.
