Is liability insurance competent to take out as a freelancer? Many freelancers with this question. We can assess whether a liability insurance ZZP is necessary and discuss what an actual liability insurance ZZP is.
What is acceptance?
There are always risks that you run as a freelancer. It is wise to take a good look at these risks. Here you look at the possible impact and the chance that the risk will become a reality. This way, you know that this risk can stand in the form of the survival of your ZZP company.
Risks with a low probability but high impact are expected from an insurer. An insurer will pay out an amount if the insured risk becomes a reality.
How high are the costs of such a claim?
Healthcare costs are high, so this will probably soon be more than € 10,000. Add to this the fact that your customer may become (temporarily) incapacitated for work, and expenses are covered for you.
What are the chances of this happening?
Small. If you make sure that your office is always neat and safe, this will probably never happen. But… an accident is just around the corner. Because the risk is low, but the impact is high, it is slim to transfer risk to an insurer.
What is ZZP liability insurance?
Let’s know what this insurance policy starts with. In the above example, the liability for all consequential damage and costs lies with you as a self-employed person. You can insure yourself against this liability through liability insurance ZZP. A liability insurance ZZP covers against damage. This is about the name that arises during the work. This can be damage to others’ belongings of others of the environment.
Why is insurance against damage claims necessary as a self-employed person?
The costs of a damage claim are often high, and your ZZP can make damage claims. If the claim is too high, you could even go bankrupt. Of course, if you have much money, you can choose to bear the risk yourself. In case of liability, you can then pay the costs yourself. If you do not have that much cash available, transferring the risk to a specialist is wiser. They help you in a claim and guide you through the process. This way, you don’t get lost in all the rules. The costs for hedging these risks are pretty low. At the same time, the maximum expenses that are reimbursed are high.
When do you take out liability insurance?
If you want to become self-employed, make an initial assessment as soon as possible of the risks you will run. If your company exists and you are registered with the Chamber of Commerce as a self-employed person, you can take out insurance. Of course, it can also be later. Remember that risk is not the same as risk. Remember that when you cause damage and arise, this is a lot for the consequence. This suffering will be even worse if it turns out that you cannot pay the costs of the damage! It is also you at the start at risk of liability.
Is liability insurance ZZP mandatory?
And liability insurance ZZP is not mandatory but responsible. An accident is in a small corner, and a small mistake of an accident at work can lead to high damage costs. It can even record the survival of your self-employed business. The construction and legal sectors are hazardous. In the Netherlands, victims are increasingly claiming higher amounts these days. A liability insurance policy protects the self-employed against these increased costs. It also covers the legal fees involved in the settlement.