Business Insurance for Freelancers in the Netherlands: What Do You Need?

You are a freelancer. You do not have an employer insuring you against illness, disability, or liability. That means you need to arrange it yourself. But which insurances do you actually need and which are a waste of money?

1. Business liability insurance (AVB)

This is the insurance nearly every freelancer needs. An AVB covers damage you accidentally cause to a client or third party. Premiums range from 100 to 400 euros per year with coverage up to 500,000 or 1,000,000 euros.

2. Professional liability insurance (BAV)

Work in an advisory profession? A BAV covers damage from errors in your professional advice. Some clients require it before signing a contract.

3. Disability insurance (AOV)

The AOV is expensive but potentially the most important insurance for a freelancer. As an employee, you receive up to two years of sick pay. As a freelancer, you have no such safety net. If you cannot work for an extended period, your income disappears.

An AOV costs 200 to 500 euros per month on average. A longer waiting period (3 or 6 months instead of 1) significantly reduces the premium. Make sure you have a buffer to bridge that period.

4. Legal expenses insurance

A business legal expenses insurance covers legal costs in disputes with clients, suppliers, or the tax authority. Premiums are 200 to 500 euros per year.

What you probably do not need

• Life insurance: only relevant if others depend on your income financially
• Accident insurance: often overlaps with your health insurance and AOV

Not sure which insurances you need? At MOJKA Finance, we help you think through your complete financial picture. As your expat accountant in Rotterdam, MOJKA Finance is here to help – view our services or get in touch.