Which insurance should you consider taking out as an employee, employer or client, self-employed professional or private individual. Examples include income protection insurance, liability insurance and insurance against damage or costs.
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Income protection insurance
In the Netherlands, we have a number of general social security benefits that guarantee you have a basic income. These are paid from tax money. Examples include social assistance benefit and old-age pension benefit (AOW-uitkering). You don’t have to pay a premium for this and you can claim this under certain conditions. In addition, additional measures can be taken.
As an employee, you pay premiums for employee insurance schemes. These guarantee you have an income, under certain conditions, in the event of illness, incapacity for work and unemployment. Employees are compulsorily insured for this and your employer arranges this.
In addition, employees also accrue a pension with most employers. A premium is paid for this by the employee and employer on a monthly basis. This is supplementary to the old-age pension (AOW). Please note: the employer is not obliged to do this. You can set up an additional pension scheme yourself.
For self-employed professionals
A self-employed professional does not pay any premium to employee insurance schemes and is therefore not entitled to a benefit in the event of illness, incapacity for work or unemployment. As a self-employed professional, you are not therefore compulsorily or automatically insured against the loss of income that arises if you become (chronically) ill/unfit for work. You can insure against the risk by taking out invalidity insurance (AOV), but other options and combinations are also possible, such as participation in a so-called ‘solidarity fund’ – often referred to as a ‘broodfonds’ (bread fund) – a voluntary insurance policy with the Employee Insurance Agency (UWV), saving money or a part-time job in salaried employment.
You will have to compensate for not having any work or assignments with savings. You cannot insure yourself against this. It is an entrepreneurial risk. In addition, self-employed professionals, just like employees, are entitled to an old-age pension when they reach state pension age. If you want to supplement this, set up your own pension scheme.
It is advisable to insure against claims from third parties, or causing damage. There are various types of liability insurance policies. General and specifically for people with their own business.
- Personal liability insurance
Personal liability insurance is not compulsory, but it is useful to have. The contribution is low, but if you have caused damage, this can involve large amounts of money. Some employers or schools therefore make personal liability insurance compulsory.
- Third-party liability insurance
Third-party liability insurance (WA-verzekering) is for car owners and is a compulsory liability insurance for damage to third parties when using the car.
There are specific liability insurance policies for the company of self-employed professionals:
- Business liability insurance and care, custody and control coverage (Bedrijfsaansprakelijkheidsverzekering en opzichtdekking)
Business liability insurance covers damage to others that you, or your employees, volunteers or interns, cause while working. A personal third-party liability insurance is not valid in work situations. If you use, lend, hire, handle or process the belonging of another person, this is also referred to as care, custody and control. Care, custody and control is, in principle, excluded from business liability insurance. You may consider taking out additional care, custody and control coverage.
- Business liability insurance (beroepsaansprakelijkheidsverzekering)
This insures you against the financial damage that a client suffers due to a professional error for which you are liable. Examples include a process that is suspended.
Other insurance policies
In addition, there are special insurance policies for the arts and cultural sector. If you have a valuable instrument, for example, investigate whether you need instrument insurance. The same applies to expensive equipment. Other examples include production insurance for films, event insurance for festivals and transport insurance for artworks, as well as personal injury insurance and legal expenses insurance. Professional associations and trade unions often offer insurance in the event of a membership, discounts on insurance policies, or can provide advice on this.
How do I take out insurance?
Check carefully which risks an insurance policy covers and don’t only look at costs when comparing policies. Does the insurance only apply inside or also outside, only in the Netherlands or worldwide, only to personal belongings or also to rented items. Research this by requesting a quote and the policy terms and conditions for the insurance policy that you are considering. You can do this directly with an insurance company or via an intermediary, such as a professional association or insurance adviser. These intermediaries or firms often provide customer service too when something goes wrong.
Ask yourself as well for whom, or in which capacity, you need to take out insurance. Many people in the arts and cultural sector fall under three types of person: private individual, employee or self-employed professional. If you are buying expensive items in the name of your own company, you should insure them for your company and not privately.