Which insurances are important for entrepreneurs?
July 22, 2023 | 50,00 EUR | answered by Fanni Siebert
Dear tax advisor,
I am Simon Eckstein and currently planning to start my own business as a self-employed entrepreneur. In my current professional situation, I am employed and have health insurance as well as liability insurance. However, since I soon want to take the step into self-employment, I am thinking about the necessary insurances that I should take out as a start-up entrepreneur.
My concerns mainly lie in the fact that I am not sure which insurances are particularly important for me as a start-up entrepreneur. For example, should I take out disability insurance to protect myself from financial risks in case of illness or accident? Or what other insurances are advisable to best protect my company and myself as a person?
As a prospective start-up entrepreneur with no experience in insurance matters, I would be very grateful if you could provide me with an overview of the most important insurances for start-up entrepreneurs. I would also like to know which insurances are particularly relevant in my specific case and what I should pay attention to when selecting and securing the insurances.
Thank you in advance for your support and advice.
Sincerely,
Simon Eckstein
Dear Mr. Eckstein,
Thank you for your inquiry regarding the necessary insurances for entrepreneurs. It is understandable that you are concerned about securing your business and yourself, as taking the step into self-employment comes with various risks.
First and foremost, it is important to emphasize that insurance coverage as an entrepreneur plays a crucial role in covering financial risks in case of illness, accidents, or other unforeseen events. Disability insurance can indeed be a sensible protection to secure your income in case of long-term incapacity to work. Especially as a self-employed individual who relies on their income, this insurance can be of great importance.
Furthermore, there are other important insurances that you should consider as an entrepreneur. These include, for example, public liability insurance, which provides protection in case your business causes harm to third parties. Professional liability insurance protects you as a service provider or freelancer from professional errors and liability claims. Equally important is health insurance for self-employed individuals to have good coverage in case of illness.
Additionally, contents insurance for your office or business premises, legal expenses insurance for legal disputes, and cyber insurance to protect against hacker attacks and data losses may also be important.
When choosing insurance, make sure that they are tailored to your individual situation as an entrepreneur. It is advisable to seek advice from an insurance expert or a tax advisor to find the right insurance solutions for your needs.
I hope this overview of the most important insurances for entrepreneurs has been helpful to you. If you have any further questions or require more detailed advice, I am at your disposal.
Best regards,
Fanni Siebert
