You are an entrepreneur and you may or may not have staff. No matter how small or large your company is, there are always dangers lurking. And these dangers can have major consequences for you as an entrepreneur and for your company itself.
Types of insurance for entrepreneurs
Fortunately, many financial dangers for you and for your organization can be eliminated by taking out insurance. The consequences of these dangers are then covered for a monthly or annual premium. Premiums can be lower if you accept a certain deductible.
There are many types of insurance. You can insure yourself against fire and burglary, but you can also insure your income. This insurance is especially important for small entrepreneurs or entrepreneurs without staff. After all, without an income, you can get into serious financial trouble.
In this contribution, we discuss 3 important insurance policies for you as an entrepreneur, liability insurance in the event of industrial accidents, car insurance, and income insurance in the event of incapacity for work.
Income insurance in the event of incapacity for work
As an independent entrepreneur, you are completely dependent on the income you earn with your business. But if you become incapacitated for work, for example as a result of a car accident or industrial accident (Dutch: bedrijfsongeval), your income as an entrepreneur is often lost. This is especially the case with entrepreneurs without staff or small companies where the entrepreneur participates in the organization.
If you become ill or are involved in an accident, your income will be completely lost. If you have staff who take over the work, this will be different. But you may need to hire additional (replacement) staff. You will then incur costs and this will be at the expense of the profitability of your company and therefore of your income!
Fortunately, there are insurance policies that can guarantee your income. There are various types of income insurance. Some insurance policies pay 1 amount and other insurance policies a monthly amount. In addition, you can choose how high the one-off or annual payment should be. In this way, you can determine for yourself the amount for which you wish to insure yourself in the event of incapacity for work.
Damage due to an industrial accident
As an entrepreneur, you naturally ensure that you and your staff can work safely. You ensure that machines are in order, supervise the work of your employees, and give instructions on how to perform the work.
Despite all safety measures, it is still possible that you or your employee are injured in an industrial accident. As an entrepreneur and employer, you can then be liable for the personal injury suffered by your employee. And this damage can be enormous, especially if your employee becomes permanently incapacitated for work as a result of the industrial accident.
If you are held liable for the consequences of the industrial accident, you will have to deal with a personal injury claim submitted by a personal injury lawyer (in Dutch: letselschade advocaat). These will demand that you compensate for the full damage of your employee. This concerns all costs that your employee incurs, but also, for example, loss of income.
You can insure yourself against liability for an industrial accident. After an accident at work, the insurer will then process the personal injury claim and you will not have to worry about this. The insurer also takes over the communication with the personal injury lawyer, for example, a personal injury lawyer in Utrecht (Dutch: letselschade advocaat Utrecht).
If you pay for the damage yourself, this can be at the expense of the financial situation of your company. Personal injury compensation can be substantial. It is therefore wise to take out liability insurance for companies.
Injuries caused by a traffic accident
As an entrepreneur, you can also be involved in a traffic accident. Is someone else liable for the consequences of the car accident? Then this party or its insurer must compensate your personal injury and therefore also your income loss.
Is it a one-sided traffic accident or are you making a traffic error yourself? Then you cannot hold anyone liable. For this situation, there is a damage insurance policy. On the basis of this insurance, you can still be reimbursed for your personal injury and therefore also your loss of income. This insurance is therefore very important for entrepreneurs.