Dutch Business Insurance: What Every DAFT Owner Needs
Business insurance in the Netherlands can feel overwhelming. There are dozens of policies, Dutch-only websites, and confusing terminology. When we started looking into it as Dutch-American Friendship Treaty (DAFT) entrepreneurs, we had no idea what was required, what was smart, and what was unnecessary.
After sorting through it all, here is what we learned about which insurance matters and which you can skip.
Health Insurance Comes First
Before we talk about business insurance, a quick note: Dutch health insurance is legally required for everyone living in the Netherlands. This is personal insurance, not business insurance, but it is your top priority.
Every resident must have a basic health insurance policy (basisverzekering). As a DAFT entrepreneur, you pay this yourself since there is no employer covering it. Budget around 130-170 euros per month.
This is separate from everything below.
Liability Insurance (Aansprakelijkheidsverzekering)
Do you need it? Strongly recommended for almost everyone.
Liability insurance (beroepsaansprakelijkheidsverzekering for professional liability, or bedrijfsaansprakelijkheidsverzekering for general business liability) covers you if a client claims your work caused them financial damage.
For service-based DAFT businesses (consulting, design, development, writing), professional liability insurance is the most important business policy you can get.
What it covers: Claims from clients for errors, omissions, or negligence in your professional work. If a website you built goes down and the client loses revenue, this covers the claim and legal defense costs.
Cost: Roughly 15-50 euros per month depending on your profession, coverage amount, and deductible. IT consultants and financial advisors pay more; writers and designers pay less.
Our recommendation: Get this. Even if you have great client relationships, one dispute can cost tens of thousands of euros. The monthly premium is a small price for peace of mind.
Pro Tip: Many Dutch clients, especially larger companies and government organizations, require proof of professional liability insurance before they will sign a contract with you. Having it opens doors.
Disability Insurance (Arbeidsongeschiktheidsverzekering)
Do you need it? Highly recommended, but expensive.
In the US, if you get injured and cannot work, Social Security disability benefits exist as a safety net (however limited). In the Netherlands, employees get disability coverage through their employer. But as a self-employed eenmanszaak owner, you get nothing automatically.
If you cannot work due to illness or injury, your income drops to zero. Disability insurance (AOV) replaces a portion of your income during extended illness or disability.
What it covers: A percentage of your income (typically 70-80%) if you are unable to work for an extended period. Policies vary in waiting period (how long before payments start), duration, and coverage percentage.
Cost: This is the expensive one. Expect 200-500 euros per month depending on your age, profession, coverage level, and waiting period. Choosing a longer waiting period (e.g., 3 months instead of 1 month) significantly reduces the premium.
Our recommendation: This is a personal decision based on your financial situation. If you have savings to cover several months without income, you can choose a longer waiting period and lower premium. If you are living month to month, this insurance becomes more important but also harder to afford.
Reality Check: Most DAFT entrepreneurs we know either get AOV with a longer waiting period (3-6 months) to keep costs manageable, or skip it entirely and self-insure by maintaining a cash reserve. Neither approach is wrong. Just make a conscious choice rather than ignoring it.
Go at Your Own Pace
Our complete guide gives you everything we learned—step-by-step instructions, templates, timelines, and answers to the questions that kept us up at night.
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Book a CallLegal Expenses Insurance (Rechtsbijstandsverzekering)
Do you need it? Nice to have, not essential.
Legal expenses insurance covers the cost of legal assistance if you end up in a business dispute. This could be a disagreement with a client, a contract issue, or a tax dispute.
Cost: Around 15-30 euros per month for a business policy.
Our recommendation: If you work with many different clients or handle large contracts, this provides useful protection. For small freelance operations, the risk may not justify the cost. Many accountants and industry associations offer basic legal advice as part of their services.
Contents and Equipment Insurance
Do you need it? Only if you have expensive business equipment.
If your business involves physical equipment (photography gear, specialized computers, inventory), a business contents insurance policy protects against theft, damage, and fire.
Cost: Varies widely based on what you are insuring. A basic policy for laptop and peripherals might be 10-20 euros per month.
Our recommendation: If your home contents insurance (inboedelverzekering) already covers your laptop and equipment, a separate business policy may be redundant. Check your personal policy first.
Cyber Insurance
Do you need it? Situational.
If your business handles client data, processes payments, or manages sensitive information, cyber insurance covers costs related to data breaches, hacking, and cyber attacks.
Cost: 20-50 euros per month for small businesses.
Our recommendation: For most solo DAFT entrepreneurs, good security practices (strong passwords, two-factor authentication, regular backups) matter more than insurance. Consider this once your business handles significant amounts of client data.
What You Can Skip
Business interruption insurance: Designed for businesses with physical locations (shops, restaurants). If you are a freelancer working from home or a coworking space, this does not apply.
Commercial vehicle insurance: Only relevant if you have a business vehicle. Your personal car insurance is separate.
Key person insurance: Relevant for companies with employees. As a solo operator, this is you, and disability insurance covers this scenario.
Where to Buy Business Insurance
Several options for finding and purchasing business insurance:
Direct from insurers: Companies like Allianz, Nationale-Nederlanden, and Centraal Beheer offer business policies directly. Their websites are increasingly available in English.
Through a broker (verzekeringsadviseur): A broker compares policies from multiple insurers and recommends the best fit. They earn commission from the insurer, so their advice is free to you. Useful if you want someone to explain options in English.
Online comparison sites: Independer.nl and Pricewise.nl compare insurance products, though most are in Dutch. Google Translate works reasonably well here.
Through your accountant: Many Dutch accountants have relationships with insurance brokers and can connect you with someone who understands DAFT business needs.
Your KVK registration number is required for all business insurance applications.
Our Insurance Setup
For transparency, here is what we carry:
- Professional liability insurance (beroepsaansprakelijkheid): 35 euros per month
- Disability insurance (AOV) with 3-month waiting period: 280 euros per month
- Basic legal expenses insurance: 20 euros per month
Total: about 335 euros per month on top of health insurance. It is a meaningful business expense, but it lets us sleep at night knowing we are covered for the most likely risks.
Priority Order
If you are on a budget, here is the order we recommend:
- Health insurance (legally required, do this immediately)
- Professional liability insurance (affordable and opens client opportunities)
- Disability insurance (expensive but important, get it when you can afford it)
- Everything else (evaluate based on your specific business)
Do not let perfect be the enemy of good. Get the essentials covered first and add more protection as your business grows and generates more revenue.
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