Which insurances are mandatory
For most self-employed people, insurance is voluntary, but there are exceptions. Every entrepreneur in the Netherlands must have basic health insurance. You are also obliged to take out third-party insurance if you have a car or van in your name. If you have your own business premises with a mortgage, the bank usually requires building insurance as well. For other risks, such as incapacity for work or damage caused by your work, you decide whether you want to take out insurance.
Health insurance
Health insurance is required by law for everyone living or working in the Netherlands. The basic insurance covers GP, hospital and medicines, among other things. The average premium is about €158 per month, with a compulsory excess of €385 per year. You can extend this basic insurance with additional cover such as dental care or physiotherapy.
Non-mandatory insurance
Besides compulsory insurance, there are several voluntary options that protect your business and income. While these are not compulsory, they can prevent major financial problems. Consider illness, liability or damage to your belongings. It is wise to consider per risk whether you can bear it yourself or better insure it. This way, you build a solid safety net for your business.
Disability insurance
A AOV pays an income if you are unable to work due to illness or an accident. You decide the waiting period, duration and amount of the benefit. The premium is on average around seven per cent of your earnings. If you cannot take out an AOV, alternatives such as a bread fund or voluntary UWV insurance are possible.
Business liability insurance
With a AVB you are insured for damage you or your employees cause to others. Think material damage or injury while at work. One mistake can lead to high damage claims. The premium is often between 10 and 20 euros per month and is a basic insurance for many entrepreneurs.
Professional liability insurance
The professional liability insurance is designed for entrepreneurs who advise or design. It covers financial losses due to professional errors, such as incorrect advice or calculations. The premium starts at around €25 a month and is mandatory in some fields. For others, it is a wise choice in high-risk consultancy work.
Legal expenses insurance
A legal expenses insurance offers help in disputes over contracts, bills or rent. The insurance covers the costs of a lawyer or legal expert. So you can take legal action without high costs if necessary. The premium is on average around 30 euros per month.
Inventory and property insurance
This insurance covers damage to your business inventory and supplies, for example due to fire, theft or water. For business owners with valuable items or machinery, this is indispensable. The premium is between 20 and 50 euros per month, depending on the value of your possessions.
Business car insurance
If you use a car for your business, then a business car insurance (AW) compulsory. You can choose WA+, limited casco or all-risk, depending on the value of the car. The monthly premium usually varies between 50 and 100 euros. If you use a private car for business, report this to your insurer.
Is an AOV mandatory?
Disability insurance is currently still voluntary, but that is about to change. The government is preparing a legal regulation making it compulsory for every self-employed person to be insured against disability. It will be implemented through the UWV and the premium will depend on your income. Until the time it becomes compulsory, you are responsible for your own income protection in case of illness or accident.
Zzp health insurance law explained
As a self-employed person, you fall under the same Health Insurance Act as everyone else. You pay a monthly premium to your health insurer and also an income-related contribution on your profit. This contribution is collected via the Tax Administration and is deductible from your tax return. The coverage of the basic package is the same for everyone. If you have a lower income, you can apply for care allowance to keep the premium affordable.
What is the cost of insurance for self-employed people? (Compare)
Costs vary by industry, age and coverage. Insurers set their premiums based on risks in your profession. On average, self-employed people spend between 200 and 500 euros per month on all insurance combined. The table below lists common amounts.
Insurance | Average premium per month |
Health insurance (basic) | About €158 |
Disability insurance | ± €210 at €50,000 profit |
Business liability insurance | From €10 |
Professional liability insurance | From €25 |
Legal expenses insurance | From €30 |
Inventory and property insurance | €10 - €60 |
Business car insurance (third-party) | €50 - €150 |
Income security and pension accrual for self-employed workers
As a self-employed person, you only build up AOW through the government. If you want more security, you have to arrange your own pension. You can save, invest or use an annuity product with tax benefits. Your own buffer is also important for short-term setbacks, such as illness or lower turnover. Build up enough reserves to cover fixed expenses for at least six months.
Frequently Asked Questions
Which insurances are really necessary?
Health insurance is compulsory. In addition, disability insurance and liability insurance are the most important for the self-employed.
Are premiums deductible?
Premiums for business insurance are deductible as business expenses. You may not deduct the AOV premium for business, but you may deduct it privately in your income tax.
Am I insured if I work from home?
Private insurance does not cover business activities. If you work from home, then you need separate business insurance for your inventory and liability.
