As a self-employed person, you can easily run into a legal problem. Think of a customer who does not pay, a supplier who does not honour agreements, or unclear contracts. With business legal expenses insurance, you can get help. Such insurance is not obligatory, but it often saves you a lot of stress and money.
What does (and does not) business legal expenses insurance cover?
What is usually covered:
- Problems with customers or clients (when they do not pay)
- Arguments with suppliers or landlords
- Help in collecting unpaid bills
- Rental problems or business contracts
Which is usually not covered:
- Issues with the Inland Revenue or tax problems
- Conflicts that existed before you took the insurance
- Intentionally wrong or criminal actions
- Problems between business partners
The exact coverage varies from one insurer to another. There is also often a waiting period of a few months after conclusion.
When will it benefit you?
Business legal expenses insurance is useful as soon as you, as an entrepreneur, face a conflict due to your work. For example, when concluding contracts, working with customers or business risks such as liability. Ordinary private legal expenses insurance is not for this purpose.
Difference between private and business legal aid
A private legal expenses insurance only helps with private matters, such as neighbourhood disputes. A business legal expenses insurance is there for conflicts related to your work as a self-employed person. Examples include unpaid invoices or business disputes. These two insurances are separate and each has its own coverage and costs.
What does business legal expenses insurance cost?
The premium depends on your industry, coverage and turnover. Overall:
- Budget policy usually costs between €20 and €30 per month
- For comprehensive cover, you often pay €40 to €50 a month
- On average, that works out at around €300 to €400 a year
Some insurers offer additional options, such as debt collection or staff. These options do increase the premium.
When does closure make sense?
Especially if you:
- have a lot of contact with customers or frequently conclude contracts.
- works in an industry where legal problems can arise quickly.
- have no financial reserve for unexpected legal costs.
- regularly face payment delays or troublesome debtors.
Such insurance is nice for your peace of mind. After all, you are not alone legally.
Conclusion
Business legal expenses insurance gives self-employed people help with business conflicts. It covers the costs of problems with customers, suppliers or other business parties. The costs vary, but they often outweigh the risks. Especially if you have a lot of outside contact or work with complicated agreements, this insurance is a smart addition to your entrepreneurial security.
