As an entrepreneur in main occupation, it is not easy to take out the right insurance on the one hand and to avoid over-insurance on the other.
We have listed the sense (and nonsense) of the most common insurances for business owners.
Civil liability insurance
You cause unintentional damage to property or people while performing your self-employed activity. Accidents can happen quickly, but fortunately you can also be covered against them.
That’s when this classic, civil liability (BA), comes in.
Just pop into the office of your insurer, let him know what self-employed activity you are engaged in and he will provide you with a customized proposal.
Tip
Civil liability insurance, depending on your activity, is not too expensive. It will cover you against damages related to your business activity.
Compulsory? Certainly not, but there are some exceptions:
Some sectors fall under a professional institute, like architects or doctors. They will be obliged to take out civil liability insurance through their professional institute.
Fire insurance
Presumably you are already familiar with fire insurance for your own home. However, it may be interesting to contact your broker about this as well and discuss the coverage you already have.
Sometimes, as a business owner, you may have purchased quite a bit of equipment with a hefty price tag. Consequently, your classic policy may not be sufficient to cover all that pricey company equipment. Time to sit down with your broker and receive an updated proposal.
Compulsory? For your self-employed activity certainly not, but sometimes with a small addition to your already existing fire insurance, you can co-insure that more expensive company equipment.
Do you have publicly accessible business premises? Then contact your broker, because you do have to take out compulsory insurance for publicly accessible business premises.
Guaranteed income insurance
Can certainly be interesting as an entrepreneur in main occupation! After all, you are firmly tied financially to the income from your self-employed activity.
Suppose you become seriously ill, for example? Then you may no longer be able to pursue your self-employed activity, which also has serious financial consequences.
You can cover such a horror scenario with guaranteed income insurance. Contact your insurance broker and develop a customized proposal. Because there are still many variables you can discuss, which of course also strongly influence the cost price of this insurance.
Supplementary pension accrual
As a self-employed person, you have plenty of ways to give your pension a boost, such as a VSPSS (Voluntary Supplementary Pension Scheme for the Self-Employed) or SPPA (Pension Agreement for the Self-employed).
As an entrepreneur in main occupation, it is crucial to pay attention to this – at least over time anyway. After all, products such as a VSPSS or SPPA are tax deductible for your accounts.
A message of general interest
As a self-employed person in main occupation, you also accrue a statutory pension!
In fact, the government has made great efforts to equalize the statutory pension of the self-employed with that of employees. Still, it can be useful to boost that statutory pension a bit more with additional forms of pension saving. Especially if they are tax deductible!
Turnover insurance
Turnover insurance can be a lifesaver if one of the key people in your business fails. It pays an interest to offset turnover losses. Premiums are tax-deductible, but benefits received are taxable.
Bankruptcy insurance
Bankruptcy insurance is a lifeline for any self-employed person. It provides monthly benefits for a limited period if you go bankrupt. The premiums for this insurance are tax deductible, but keep in mind that the benefits are taxable.
Ready to kick off your self-employment?
Tip:
Eager to learn more about self-employment in main occupation? Find out all about it in our free crash course.
With Dexxter‘s accounting program, for entrepreneurs with a sole proprietorship who want to take their accounts into their own hands, you can make a successful start in the wonderful world of entrepreneurship!
Do you have any questions? Perfectly normal, that’s why we built the Dexxter community. That is a space in the application where Dexxter entrepreneurs can ask all kinds of questions to other entrepreneurs and get answers.
You ask your questions to other entrepreneurs with a sole proprietorship, so you gain experience from entrepreneurs who have already overcome your obstacles.
