What is corporate liability insurance?
Public liability insurance (AVB) can cover liability for personal injury and property damage caused by your business activities. For pure financial loss resulting from professional errors, professional indemnity insurance is often required. Occupation-specific policies may differ from this. Therefore, check the insured activities, limits, and exclusions; the product name alone does not tell the whole story.
Is corporate liability insurance mandatory?
For self-employed professionals, there is no general statutory public liability insurance requirement. However, a client, trade association or quality mark may make appropriate insurance a condition. Check which coverage and insured amounts are required. See the explanation of AVB at Ondernemersplein.
Who is this insurance important for as a self-employed person?
Public liability insurance is especially important for sole traders who work physically on clients' premises or get to work with tools, materials or installations. Consider professions in construction, maintenance, assembly, engineering and landscaping. But entrepreneurs who provide training or guidance on location also run a risk if damage occurs to a client during their activities. Assess what amount of damage you can bear yourself and which insurance suits those activities.
In healthcare
For healthcare work, check cover for professional errors and medical procedures as well as property damage and personal injury, and check the institution’s requirements. Have the insured activities explicitly confirmed. A general description of public liability cover is insufficient.
What does business liability insurance cover and what doesn't?
Three situations make clear what you need to check:
- A customer trips over your cable and is injured: potential PL/CL insurance cover.
- A professional negligence error causes purely financial loss: check professional indemnity.
- You damage the item you are supposed to repair: check liability cover for items you are working on or have in your care.
These are examples, not a commitment of cover. Damage caused intentionally and explicitly excluded situations are typically not covered by the insurance. An unintentional mistake or negligence is not the same as intent; precisely such damage may be covered. Your own belongings, motor vehicles and the re-execution of your work may fall outside the cover. Read the terms and conditions and report a claim to the insurer in good time.
Difference between professional and business liability insurance
The AVB generally focuses on liability for personal injury and property damage. A professional indemnity insurance (PII) focuses on professional negligence, in advisory work often pure financial loss. For specific professions, policies may combine these risks differently. Which combination suits depends on your activities. Even with multiple insurance policies, exclusions and excesses may still apply.
Cost of business liability insurance zzp
There is no fixed premium for all self-employed professionals. Request a quote based on your actual activities, turnover, insured amount, excess and additional cover. Compare the total annual premium including insurance tax and any fees. An introductory discount is not the premium for subsequent years. For your records, also read how VAT on insurance works.
Compare business liability insurance zzp
When choosing an AVB, it is wise to pay attention to:
- the level of coverage
- the deductible
- the specific policy conditions
- exclusions relevant to your profession
- obligations imposed by the insurer, such as use of general terms and conditions
Accurately describe your actual activities and check whether they are insured under the policy. Also keep your Chamber of Commerce details up to date. In addition, ask about custody and control cover for items you are working on or hiring, the countries covered, defence against claims, notification periods and prior or run-off risk when switching or stopping. A personal liability insurance policy generally does not cover business damage.
Additional insurance for self-employed workers
In addition to the AVB, it may be wise to have additional insurance take, such as a professional liability insurance, a disability insurance, legal aid or cover for inventory, goods and business interruption. Which insurances are relevant to you depends mainly on your activities and the risks involved.
