Which insurances may I need for my business?
Insurances for a business in the Netherlands
When doing business you may run many types of business related risks, the most common being: damaged inventory, debtors who don't pay your invoice, legal issues with suppliers, etc. Those types of risks can be limited to a certain extent by having the right insurances.
Company liability insurance
This insurance covers the liabilities that might arise due to accidents. For example: if an employee drops a brick stone on a random car, than it is possible to get the damages paid through the insurance company. The insurance will not cover damage caused by the product you have sold to your client. That is your business risk when undertaking projects.
Profession liability insurance
Profession liability insurance insures the damages you have caused to third parties when providing your services in accordance to your profession. Profession liability insurance concerns jobs where your role is the advisory role, for example: lawyers or accountants. In the case of a claim the insurance will cover the claim. In this case the insurance covers part of the business risks associated with the job that is undertaken. In the Netherlands only certain professions can arrange this insurance.
Debtors insurance is for clients that did not pay their debts back. The insurance covers the open fee to a certain extent.
Office building and inventory insurance
This insurance covers damages to your office building or inventory as result of: fire, lightning or explosion, burglary, waterleaks, etc.
Company damages insurance
It may happen that due to damage to your building or inventory your company will come to a standstill. In the case of a standstill you will not be able to have an income and the costs will continue to sum up. In those cases it is possible to get a company damages insurance to cover the suffered costs.
Business partner insurance
It is often the case when the business partner passes away or is seriously ill, that the family members have the right to take over part of the company. In some cases the existence of the company can run some risk. To prevent the risk of the company being split up this insurance will give the surviving business partner a money amount to buy the remaining share of the company.
Legal assistance insurance
With a legal assistance insurance, you get insured for legal assistance when you have disputes with employees, suppliers, government or business partners.