Insurance for entrepreneurs: how do you best protect yourself and your staff?
March 2023 – Entrepreneurship is about taking risks. At the same time, all kinds of unexpected events can crop up while you and your employees are at work. Therefore, it is wise to take care of the necessary insurance. Some insurances are mandatory, others are strongly recommended.
Why mandatory?
When it comes to compulsory insurance, a distinction is usually made between insurance that every business must take out and insurance that is compulsory for certain activities.
Why do you, as an entrepreneur, have to take out certain compulsory insurances? Quite simply because this is how our government wants to protect all parties involved in certain risks as well as possible: not only the insured himself, but also third parties who become victims and society as a whole. Are you not complying with this obligation? Then you risk a fine or even a professional ban.
Compulsory insurance for your company: an overview
Some of the most common compulsory insurances are the following:
For your company vehicle(s), you need to take out car insurance or civil liability motor vehicle insurance (BA insurance). This provides extra peace of mind for any damage on the road.
Do you have a business that is publicly accessible, such as a shop, catering establishment or showroom? If so, as an operator you are obliged to take out objective civil liability fire and explosion insurance. Good to know: this obligation also applies to office buildings with more than 500 square metres of public space.
Do you employ staff? Then you should consider compulsory accident at work insurance. This way, your employees are insured if they have an accident at work or on their way to work. What is important here is that you take out this insurance before your employees are hired. The Dimona platform will help you with this.
Additional obligations for specific professional groups
For specific professions, the above list is supplemented by:
Ten-year civil liability insurance: this insurance is compulsory for contractors, architects, engineers and other service providers in the construction sector. Thanks to this insurance, you are covered for defects affecting the strength and/or stability of a building.
Professional liability insurance, mandatory for professionals in regulated professions to cover professional (intellectual) errors. This obligation applies to accountants, lawyers, architects, surveyors and doctors, among others. For your information, this insurance is often confused with BA Uitbating and Directors' Liability.
What is the difference? Professional liability insurance (also known as BA Professional) comes into play when a mistake, damage or negligence to third parties results from a company's services. A BA Uitbating (or business liability insurance) comes into play when damage results from an event related to the daily life of a business, and not the professional activity itself.
Directors' liability insurance, in turn, refers to the protection of your personal assets (as a director of a company) in case of wrong decisions (e.g. violations of applicable laws).
Which insurances are optional?
In addition to this list of compulsory insurance, you can optionally go for extra protection through:
A driver's insurance policy, in addition to the compulsory BA car insurance.
BA private life insurance, which protects yourself and your employees against damages for which you are civilly liable in your private life. After all, with the definitive breakthrough of teleworking, an accident at home happens quickly.
A business damage insurance policy, sometimes (and rightly!) called the company's 'life insurance policy'. When your business is damaged, repair work can often take months - or even years. In the meantime, however, costs continue to mount. This insurance therefore buys you extra peace of mind and comfort.
In 2023, cyber insurance is no superfluous luxury. After all, the number of cyber attacks is increasing rapidly. Unwanted digital intruders - who often demand a ransom - can cause reputational damage and, in the worst case, threaten the survival of your company.
Do you operate as a contractor? If so, an all construction site risks (ABR) insurance policy is a smart move. Such policy insures a building under construction against damages, regardless of who or what caused them.
And do you become incapacitated as a self-employed person due to an accident or illness? Then an extra financial safety net is more than welcome to cover medical expenses. Hospitalisation insurance should therefore not be missing from your insurance portfolio.
Do you become incapacitated after an accident or illness? If so, benefits from your health insurance fund may not be enough to cover fixed costs. Thanks to guaranteed income insurance, you will have extra breathing space.
