Which insurances do I need as a founder?
May 27, 2023 | 40,00 EUR | answered by Karl Albrecht
Dear tax consultant,
My name is Wanda Otten and I am about to start my own business. I have already invested a lot of time and energy into planning my company, but I still feel unsure about the topic of insurance. That's why I am reaching out to you to receive professional advice.
Currently, I am facing the question of which insurances I need as a founder. I am aware that there are different insurances that are important for founders, but I am not exactly sure which ones are most relevant for me and my company. I am worried that I might overlook important insurances and therefore be unprepared in case of an emergency or liability situation.
I want to make sure that my company is well protected, but at the same time, I also want to avoid unnecessarily high costs. I understand that insurances are an important investment, but I want to make sure that I choose the right insurances that best meet my individual needs.
So my question to you is: Which insurances would you recommend for me as a founder and why? Which insurances are mandatory and which ones are optional but still recommended? Are there specific insurances that are particularly important for my planned business? And how can I ensure that I find the right insurances at a fair price?
Thank you in advance for your support and I look forward to your professional advice.
Sincerely,
Wanda Otten
Dear Mrs. Otten,
Thank you for your inquiry regarding insurance for your planned start-up. It is very important to address this issue early on in order to best protect your business. In fact, there are various insurances that are relevant for founders, and it is important to choose the ones that best suit your individual needs.
First of all, there are some insurances that are legally required for founders in Germany. These include health insurance, pension insurance, unemployment insurance, and long-term care insurance. As a self-employed individual, you will need to take out these insurances with the respective insurance providers.
Furthermore, there are some insurances that are not legally required but are highly recommended for founders. This includes, for example, public liability insurance, which protects you against third-party liability claims caused by your business. This insurance is particularly important if you interact with customers or other companies and could potentially cause damages.
Another important insurance for founders is professional liability insurance. This insurance protects you against liability claims that may arise due to errors or omissions in your professional activities. Especially for freelance activities such as consulting or services, this insurance is very important.
I also recommend taking out contents insurance to protect your business inventory such as office furniture, computers, or machinery from damages caused by theft, vandalism, or fire. Additionally, business interruption insurance may be useful to offset financial losses if your business needs to temporarily close due to damages.
To find the right insurances at a fair price, I recommend obtaining quotes from different insurance companies and comparing them. Pay attention not only to the price, but also to the services and conditions of the insurances. Often, it is worth opting for individual advice and tailored insurance solutions to be optimally protected.
I hope that these recommendations have been helpful to you and I am available for any further questions. I wish you success in your start-up and a secure future for your business.
Best regards,
Karl Albrecht
