Why you need your own insurance
An employer arranges sick pay, disability cover and liability cover for its employees. As a freelancer, you arrange all of this yourself, with insurance.
Disability insurance (AOV)
With disability insurance ("arbeidsongeschiktheidsverzekering", AOV), you receive an income if you are unable to work because of illness or injury. For most freelancers, this is the most important cover, because your ability to work is your entire income. It is also the most expensive. Some freelancers therefore choose an alternative, such as a "broodfonds" (a group of entrepreneurs who support each other during illness).
Professional liability (beroepsaansprakelijkheid, BAV)
This insurance covers claims for mistakes in your professional work or advice. It is essential for consultants, advisors, designers and anyone whose work could cause a client financial loss.
General liability (bedrijfsaansprakelijkheid, AVB)
This insurance covers damage or injury that you accidentally cause to other people or their property during your work. It is important for anyone who works on-site or with physical products.
Other covers to consider
- Legal expenses insurance: help with disputes and contracts.
- Cyber insurance: increasingly relevant if you handle client data.
- Goods/equipment insurance: if you own valuable business assets.
How to decide
First, work out which risk would cause you the most financial damage. For most freelancers, that risk is being unable to work. Arrange disability cover or a broodfonds first. Then arrange liability cover that matches your type of work.
If you work through a BV, the company takes out the insurance and pays the premium. The premium is then part of the company's bookkeeping. For the bookkeeping and the payroll of your BV, see payroll and administration for a Dutch BV.
Related articles
See also becoming unable to work as an entrepreneur, the broodfonds and disability insurance (AOV) for freelancers.