Compulsory and non-compulsory insurance
Some insurance policies are compulsory, even for starters, depending on the type self-employment. They are a fixed part of your business costs.
The following insurance policies are compulsory:
- Public indemnity insurance for the operators of establishments open to the public
- Car insurance as part of your civil liability
- Occupational accident insurance for your personnel
There are also several other types of insurance which, though not compulsory, may be of interest to any self-employed person, such as:
- Professional liability insurance
- Legal expenses insurance
- Income protection in case of incapacity for work
- Hospitalisation insurance to supplement your health insurance
- Pension savings, several types
Civil liability for damage
Civil liability insurance gives you protection at work. A civil liability insurance policy (CL) will cover a specific area, depending on your activity:
- CL operator: for damage caused while at work. A parked car is scratched, for example, while you are carrying a box or other materials.
- CL on delivery of works: for damage caused by goods or services delivered. Unfortunately, an improperly installed shower has caused some water damage.
- CL entrusted goods: for damage to goods in your care. A cup of coffee is accidentally spilled over that laptop you were repairing.
- CL motor vehicle: the car insurance. Compulsory when you take a vehicle on the road or use your own vehicle for business purposes.
- CL liability for fire and explosion: compulsory if you operate an establishment open to the public, although fire insurance is a must for every business.
Occupational accident insurance
When you start a business with personnel you are legally required to obtain occupational accident insurance. This insurance guarantees the reimbursement of medical costs for your employees and protects a large part of their income in the event of an accident at work.
You can also opt for supplementary occupational accident insurance, which takes the employee's actual salary and other elements into account in the event of incapacity for work. In other words, this insurance protects their standard of living in the event of an accident at work.
Note: this occupational accident insurance does not cover you yourself, as an entrepreneur, against an accident at work.
You are only protected if you take out income protection insurance with accident cover or accident insurance for yourself.
Professional liability for professional negligence or errors
Professional liability insurance protects you against professional negligence or errors. While it is not compulsory for most professions, it does enable entrepreneurs of all kinds to work with peace of mind.
For some professions it is a requirement to take out professional liability insurance. To see if you belong to one of those professions, see list of compulsory insurance produced by the FSMA.
Tip: consider every possible accident or error you might encounter in your business and ask your insurer how these are best covered.
Legal expenses insurance
Legal expenses insurance covers the legal costs involved in a dispute. Legal advice does not come cheap, and a legal dispute can drag on for a long time. By taking out insurance, you give yourself peace of mind in difficult periods.
One type of legal expenses insurance is Tax Protection insurance which protects you in case of tax audits and disputes. Here too, legal and tax advice are best sought from the experts under tax insurance.
Hospitalisation insurance
As an entrepreneur, it is also a good idea to prepare for difficult times, such a stay in hospital for yourself or a family member, as well as incapacity for work and even death.
Hospitalisation insurance covers your hospital costs, which can sometimes be high, thereby supplementing your compulsory health insurance.
- In the case of a company, your hospitalisation insurance may be at the company's expense.
- In the case of a sole proprietorship, you would take out insurance as a private individual.
- If you employ personnel, collective hospitalisation insurance is a good non-statutory benefit to reward your employees and attract new talent.
Income protection
Temporarily unfit for work? With Income Protection Insurance you can count on a protected salary for the self-employed. Although insurance of this type is not compulsory, it is crucial as a means to bridge periods of incapacity with peace of mind.
A few specific benefits:
- The insurance is flexible: you choose what your protected income will be.
- Your premium is tax deductible.
- You choose the situations in which you receive cover: sickness only, or accident included.
- You supplement periods with reduced or no insurance benefit payments for greater financial stability.
Pensionsaving
Today, the statutory pension for the self-employed in Belgium is fairly low, on average about € 960 a month. Therefore, if you want to maintain your current lifestyle, it is wise to save for an extra nest egg.
With attractive pensionsaving options for the self-employed you can build an additional pension while also enjoying tax benefits throughout your career.
Just starting out in self-employment? It is crucial to protect yourself and your business. The earlier you start your pension savings and other smart insurance policies, the great the mental space to concentrate on your own business.
