Company insurance in the Netherlands
In many cases it is advisable to insure yourself against possible risks, whether you are operating a Dutch BV company, a self proprietorship or any other type of company form. In the Netherlands, insurance is taken out with private insurance companies.
Type of company insurances
The type of insurance you should take out depends for a large part on the type of profession you practice or the type of business your run. For example a company that is active in a more high-risk industry or environment will often need different type of insurance than a marketing consultant.
Business liability insurance
Provides liability coverage for damage you or an employee do to items or people. For example, damage from knocking over a cup of coffee over a customer’s laptop or someone who stumbles through you and breaks a leg.
Legal expenses insurance
Provides legal assistance in conflicts, for example with a customer or supplier. Such as a conflict about a contract or a product / service that you provide.
Professional liability insurance
Provides cover in the event of a mistake in your work or advice from you or your employees, and your customer suffers financial loss as a result. For example, giving incorrect advice, or making an incorrect calculation or incorrect software code.
Provides an income if you can no longer work partly or not at all due to incapacity for work.
Sick leave insurance
Provides compensation for the payment of salary to sick employees. Such as one or more employees who are unable to work due to illness, and where you as an entrepreneur must continue to pay their salary.
Cyber risk insurance
Provides cover in the event of damage due to, for example, hacking of your systems and / or data loss. For example, hostage taking of your website, a system crash due to a hack or your liability for loss of data.
Inventory / Goods insurance
Provides coverage for damage to your company inventory and / or goods. Think of damage to your goods or inventory due to fire, water, burglary or theft.
Computer and / or Electronics insurance
Provides coverage for damage to your computer (s) and / or electronics. For example, a laptop that has fallen and has stopped working.
Business interruption insurance
Provides cover for turnover loss due to a fire or malfunction. For example, due to a fire in your business premises, which means you can no longer make any turnover, but your fixed costs will continue
Business travel insurance
Provides coverage for damage to you (and your employees) during business trips. Such as loss of luggage, medical costs or replacement transport.
Crowdsurance (no insurance, but risk sharing)
Offers a temporary income (max. 2 years) through risk-sharing with other entrepreneurs if you can no longer work in part or at all due to disability. For example, if you can no longer work due to an accident or illness.
Company Car Insurance
Provides coverage for damage to others and / or your business car. For example, due to an accident on the road where you cause damage to someone else.
CAR (Construction All Risk)
Provides coverage for material damage caused during the construction or assembly of buildings, roads, bridges and installations. For example, due to an error that causes damage to a neighboring building.
What type of insurance do I need while doing business in the Netherlands?
The most commonly taken out business insurances are the Business Liability Insurance and the Legal Expenses Insurance. However, every company has its own needs and preferences. A building/construction company should most likely consider a Construction All Risk Insurance, whereas a law firm should protect itself against the the consequences of a mistake in an advice from one of its lawyers.