Which business insurances are mandatory in the Netherlands?
As an entrepreneur, you take risks. You invest time, money, and energy in your business and want to prevent unexpected events from disrupting your plans. But which business insurance policies are actually mandatory in the Netherlands, and which can you take out voluntarily? This article provides a clear explanation.
Is business insurance mandatory in the Netherlands?
In the Netherlands, there's no general insurance requirement for all entrepreneurs. However, there are situations where business insurance is mandatory. This often depends on the industry you operate in, the activities you perform, and whether you employ staff.
Compulsory business insurance
- Insurance for commercial vehicles
Do you have a company car, van or truck registered in your company's name? Then you are required to have at least one Third-party liability insurance This is similar to private car insurance and covers damage you cause to others with your company vehicle.
- Compulsory employee insurance (via payroll tax)
If you employ staff, you are obliged to insure them for, among other things:
- Sickness Benefits Act (ZW)
- Unemployment Act (WW)
- Work and Income (Capacity for Work) Act (WIA)
These insurances are arranged through payroll taxes and are the responsibility of the employer.
- Professional groups with mandatory professional liability
For some professions, such as lawyers, notaries, accountants and architects, a professional liability insurance Mandatory. This covers the financial damage that can arise from professional errors or incorrect advice.
Recommended, but not required
In addition to the mandatory insurances, there are many business insurances that are not mandatory, but are still wise to take out:
- Business liability insurance (AVB): covers damage that you as an entrepreneur cause to third parties.
- Disability insurance (AOV): provides income if you become ill or incapacitated for work for a long period of time.
- Legal expenses insurance: for legal conflicts or contract disputes.
- Inventory and goods insurance: covers damage to business inventory or stock.
- Cyber insurance: protects against digital risks such as data leaks and hacks.
Conclusion
Mandatory business insurance is limited, but depending on your business activities, it may be wise to take out additional coverage. This prevents financial risks and ensures your business can continue to operate without worry.
Do you want to know which insurances are mandatory for your industry and which supplements are useful? Take the free business insurance check at Bouvy Advies and discover what best suits your situation.