Which insurances are particularly important for self-employed individuals?
February 1, 2024 | 40,00 EUR | answered by Katrin Sontheimer
Dear Insurance Lawyer,
my name is Otto Klett, I am a self-employed IT consultant. Over the past years, I have built up my own business and I am now looking for the right insurance policies to adequately protect my business.
I have already taken out liability insurance to protect myself against potential claims from clients or third parties. However, I am wondering if this is sufficient or if there are other important insurances that I should consider as a self-employed individual.
My biggest concern is not being able to work in case of illness or accident, leading to loss of income. Therefore, I am particularly interested in income protection insurance or disability insurance. However, I am unsure if these insurances are really necessary and what the costs would be.
I am also thinking about the protection of my employees. Should I consider taking out employer's liability insurance or business interruption insurance? Which insurances are especially important in my case and what coverage should they provide to best protect my business?
I would greatly appreciate it if you could provide me with your recommendations for the most important insurances for self-employed individuals and suggest possible solutions to minimize my business risks. Thank you in advance for your assistance.
Yours sincerely,
Otto Klett
Dear Mr. Klett,
Thank you for your inquiry regarding suitable insurances for your IT consulting business. As an attorney specializing in insurance law, I would like to provide you with some recommendations to ensure optimal protection for your business.
First of all, it is very positive that you have already taken out liability insurance to protect yourself against potential claims from customers or third parties. This insurance is indeed very important for self-employed individuals, as it protects you from financial consequences of damages that may occur during the course of your professional activities.
In addition to liability insurance, I strongly recommend taking out either a sickness benefits insurance or a disability insurance. These insurances are particularly important as they protect you from income loss in case of illness or accident. If you are unable to work as a self-employed individual, these insurances can help you continue to support yourself. The costs for such coverage may vary depending on the provider and contract details, so I recommend seeking individual advice to find the right offer for you.
Regarding the protection of your employees, it is also advisable to consider taking out either a business liability insurance or a business interruption insurance. The business liability insurance protects you from claims for damages that could be caused by your employees, while the business interruption insurance helps compensate for financial losses in case your business needs to temporarily close due to a damage event.
In summary, as a self-employed individual in the IT consulting industry, I highly recommend taking out a sickness benefits insurance or disability insurance in addition to liability insurance. Furthermore, you should also consider protecting your employees through business liability insurance or business interruption insurance. Individual advice from an insurance specialist can help you find the right insurances for your business and minimize your business risks as much as possible.
I hope that my recommendations are helpful to you and I am available for further questions. Thank you for your trust.
Sincerely,
Katrin Sontheimer, Attorney specializing in insurance law
