New Expat Entrepreneurs in the Netherlands: Insurance You Might Need

If you’re reading this, chances are you’re about to dive into a new adventure: starting your own business in the Netherlands. With its stable economy, strong global ranking, and relatively low setup costs, it’s a solid place to kick things off.

But let’s be real: running a business isn’t all smooth sailing. Unlike employees, business owners don’t have a safety net when things go wrong, whether it’s falling ill, losing clients, or dealing with costly mistakes. And no matter how prepared we think we are, life has a funny way of throwing curveballs. That’s where insurance becomes your silent business partner. It’s what helps you stay afloat when the unexpected hits.

Here’s a quick look at the insurance you should consider when building your dream from the ground up.

Health Insurance: No Skipping This

If you’re living and working in the Netherlands, Dutch basic health insurance is mandatory, even if you already have coverage from your home country. It covers essential healthcare like GP visits, hospital stays, and medication. You’ll pay a monthly premium and a yearly deductible.

Liability Insurance: For When Things Go Sideways

Being good at what you do doesn’t make you immune to mistakes. These insurances offer peace of mind when they occur.

Professional Indemnity Insurance

If you offer advice, design, or specialised services, Professional Indemnity Insurance is essential. It protects you if a client suffers financial loss because of a mistake or oversight in your work, whether it’s a missed detail in a plan or advice that backfires. For certain professions like lawyers, civil-law notaries, and architects, it’s legally required.

Business Liability Insurance

This covers damage or injury caused to others by you, your employees, or even your products or services. Picture a client tripping over a cable in your office, or your product accidentally damaging their property.

While professional indemnity covers financial loss from your work, business liability is what you need when someone gets physically hurt or something gets broken. Both matter, just in different ways.

Legal Expenses Insurance

Running a business means dealing with contracts, clients, landlords, and suppliers. So legal issues can pop up when you least expect them. Legal expenses insurance helps cover the cost of legal advice or proceedings if things go south. Whether it’s chasing an unpaid invoice or resolving a contract dispute, this insurance makes sure you’re not footing the legal bill all on your own.

Income Protection: Because Life Happens

When you’re self-employed, no one pays your salary if you can’t work. That’s why it’s important to plan for the “what ifs.”

Disability Insurance (Arbeidsongeschiktheidsverzekering/AOV)

AOV is your financial safety net if you ever find yourself unable to work due to illness or injury. For self-employed professionals, it’s especially important because if you can’t work, you don’t earn. With AOV, you agree on the coverage and payout with your insurer.

While it’s not mandatory yet, the Dutch government plans to change that by January 2027 with the Basic Insurance against Incapacity for Work for the Self-Employed Act (BAZ). So it’s worth getting familiar with it now.

Crowdsurance and donation circle

These are alternatives to AOV. A growing trend, Crowdsurance and donation circles are growing in popularity among self-employed folks in the Netherlands. They’re basically support networks where members pool money to help each other out during illness. If you get sick and can’t work, the group steps in with monthly contributions to help cover your income.

The main difference? With crowdsurance, you don’t necessarily know the other members. Donation circles, on the other hand, are usually made up of people who know each other, and they often involve regular meetings. Both are based on mutual trust and shared responsibility.

Voluntary UWV Insurance

If you’ve just left a job to start your own business, you might be able to keep some of the safety nets you had as an employee. The UWV (Employee Insurance Agency) offers voluntary insurance for things like illness, loss of work, or disability. But you need to apply within 13 weeks of ending your previous employment contract. It’s a helpful option if you want some extra peace of mind as you transition into self-employment.

Retirement Insurance

Everyone who lives or works in the Netherlands automatically builds up a basic state pension through the General Old Age Pensions Act (AOW). It’s a good foundation, but if you’re self-employed and want more than the bare minimum in retirement, you’ll need to take matters into your own hands.

One popular way to do that is through annuity insurance. With this, you make regular contributions or a one-time payment to an insurer or bank. They will then pay you a steady income when you retire. You can shape it to fit your needs: whether it pays out for a set number of years, stops when you pass away, or continues to support your loved ones.

Staff Insurance: Backing Up Your Team

If you’re planning to hire, there are additional responsibilities and protections to think about.

Sick Leave / Absenteeism Insurance (Verzuimverzekering)

In the Netherlands, you’re required to pay at least 70% of your employee’s wages for up to two years if they fall ill. That’s a big commitment, especially for small businesses. Sick leave insurance helps cover those wage costs, as well as expenses for things like reintegration and counselling.

Accident or Collective Health Insurance (Arbeidsongevallenverzekering)

This covers serious situations where an employee becomes permanently disabled, or worse, passes away, due to a work-related or commuting accident. It’s not mandatory by law, but some collective labour agreements (CAO) do require it. So be sure to check the rules. Either way, it’s a thoughtful way to show you’ve got your team’s back, no matter what.

Damage Insurance: For Your Business Assets

What happens if your office gets flooded or your stock is stolen? That’s where these insurances step in.

Business Interruption Insurance (Bedrijfsschadeverzekering)

If something like a fire, flood, or vandalism forces your business to temporarily shut down, this insurance helps cover the loss of income and keeps your fixed costs (like rent or salaries) covered while you recover.

Goods Insurance (Goederenverzekering)

This one protects your stock and raw materials (finished products, packaging, or supplies) from theft or damage. Especially useful if you rely on physical goods to run your business.

Inventory Insurance (Inventarisverzekering)

Think laptops, office furniture, and machinery. If a fire, water leak, or burglary damages your tools or equipment, this insurance helps you replace them without draining your savings.

Building Insurance (Opstalverzekering)

If you own your workspace, this covers damage to the building itself. If you’re renting, your landlord is usually responsible for this, but it’s worth double-checking to be sure.

Vehicle Insurance (WA-verzekering)

If you use a car for your business, third-party liability insurance (WA-verzekering) is mandatory. It covers damage you cause to others while driving. You can also choose extra coverage for damage to your own vehicle or theft.

Cyber Insurance: Click, Hack, Crash? Covered.

If your business stores client data, uses cloud tools, or just lives online (like most of us do these days), cyber insurance is worth a serious look. It helps cover financial losses from hacks, data breaches, ransomware, or viruses. Think of lost income from downtime, legal fees, or the cost of recovering stolen data. Even if you’re careful, it only takes one click on the wrong link for things to go sideways.

The Bottom Line

Insurance isn’t the flashiest part of running a business. But it’s one of the wisest investments you can make. It’s not just about ticking a box; it’s about protecting everything you’ve worked so hard to build.

Before you sign anything, make sure to read the terms and conditions carefully to know exactly what is (and isn’t) covered. Every business faces different risks, so take the time to figure out what makes sense for your specific situation, goals, and setup.

With the right coverage in place, you won’t have to lose sleep over the “what ifs”. You’ll have the peace of mind to focus on what really matters: growing your dream and enjoying the journey.