What Are the Most Important Insurances for Startuppers in the Netherlands?
As an entrepreneur, you’re a risk-taker by definition. But the fact that you’re choosing to enterprise instead of taking a secure steady income job doesn’t mean that you have to take any more risks than necessary. That’s where insurances come into play, and the right ones can certainly be some of your best business partners.
However, there are many insurances and insurance companies available in the Netherlands. So, what are the essential ones that are a must for every serious startupper? And how do you choose the right insurance company for your situation? Read on to find out!
In the Netherlands, you’re liable for the material and physical damage that you, your products or services, and your employees cause. Although you of course never intended to do any damage, the risk is always there. Especially when your startup grows and turns into a scaleup, your company will interact with more people and thus risk more liability claims.
Yet, as a startup, you also run the risk of causing unintended damage already, for example, if one of your prototypes turns out wrong and causes consequences that you had not foreseen yet. Or what about when you spill a cup of coffee on that brand new laptop of your partner or client?
The latter is covered by an Aansprakelijkheidsverzekering, which for freelancers starts at €10 - €15 per month. In order to insure the liability of a company, there is the Bedrijfsaansprakelijkheidsverzekering, which varies in pricing depending on factors such as the number of employees, the industry, and the amount of coverage. For the former example, there is a beroepsaansprakelijkheidsverzekering (BAV), which ensures damage caused by your doing your profession and any judicial defence that you might need. For freelancers, the BAV premium starts at less than €300, - per year.
In order to take the risk of being a startup entrepreneur, you have to be optimistic by nature. Of course, you have to believe in your company and be optimistic about its success. However, the risk of optimism is that you tend to assume that you’ll always be healthy, vibrant, and productive enough to lead the company. Yet, accidents and illnesses can happen, regardless of how careful and healthy you approach your life.
So, since your startup revenue will largely depend on your wellness – especially in its early phases – you should definitely get an arbeidsongeschiktheidsverzekering. That’s a mouthful way of saying that you’ll still get paid if something disables you from being able to work. These insurances are a bit more expensive, a gross premium of €3.000 per year, but if you work 40 hours a week it only costs you €1,56 per hour.
Whether you're a B2B or a B2C company, in the end, you’ll always be dealing with people. And if you have to deal with people – be it an employee or a client – there’s always a risk that you get into conflict. A rechtsbijstandverzekering provides you with both legal advice and can take care of any lawyer costs in case an altercation leads to that.
Premiums for this type of insurance start at roughly €100 per year if it’s just for you personally, and about €300 per year if you want to insure your family too.
If we don’t like to think about disability, we sure as hell don’t like to think about our final destination – our funeral. Yet, your funeral is imminent. And the good thing about that, is that a funeral insurance will always payout. So, although this is less of a business matter, taking out an uitvaartverzekering takes some of the pressure of the relatives that you will leave behind.
The costs for this insurance increase depending on how old you are when you get it. Yet, up to the age of 35, your premium will stay under €10, - per month.
The final insurance that may come in handy is the cyberverzekering. This one is of course only relevant if (part of) your work happens in digital environments or online. However, if your work does fall into this category, definitely consider insuring yourself because cyberattacks have become a lucrative and scalable business model.
A cyberverzekering can cover your for cyberattacks such as privacy breaches, data leaks, hackers, digital blackmailing, crisis management, and much more. The costs for this insurance are luckily still low, starting at less than €5, - per month.
Which company should I choose for my insurances?
This of course depends on your personal and professional situation, and in how far you’d like to be insured. Luckily, there are convenient insurance comparing websites available that can advise you and help you find the best deal for you. For your funeral insurance, check out uitvaartverzekering.nl to compare the best providers in the Netherlands.
For the other insurances, we recommend Yezzer, because this platform specializes in independent advice for entrepreneur insurances. Have a look at their disability insurance, liability insurance for freelancers, company liability insurance or professional liability insurance, cyber insurance, and legal insurance or give them a call for a personal assessment.