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Don’t Neglect Injury Insurance for Entrepreneurs, Especially if You’re Solo

By: Marinus Nutma


Driver man in front of wrecked car in car accident. Scared man holding his head after auto crash. Tragedy car collision. Dangerous road traffic situation.

Congratulations, you’ve started your own company. As an entrepreneur, the company is all about you. You are invaluable, but also vulnerable. If you drop out, this will have major consequences for your company, but also for you personally. 

This is why you need to consider the possibilities of insuring yourself against incapacity for work after an accident. Where are you entitled to all your damage, for example after a traffic accident or industrial accident (Dutch: bedrijfsongeval)?

Disability insurance 

Especially if you do not have staff who can take over the work for you, such as with a freelancer, it is important to take out proper insurance against incapacity for work. But this also applies if you are a director, or major shareholder of a small, medium or even large company. 

There are many types of disability insurances. Some insurance policies pay out a fixed insured amount per year in the event of disability. You can then agree on the sum insured with the insurer. It is then important to periodically check whether the amount still covers damage. Otherwise, you can be left with loss of income. There are also insurance policies that reimburse a percentage of your income without an accident. Often there is not complete coverage. 

Incapacity for work due to an accident 

You travel a lot for your company, but you are also working on the shop floor. If you then have an accident, you could end up with damage. Damage after an accident is called personal injury. 

Suppose you have a car accident because you were hit by another car in your car. If you are injured in the process, you will suffer injury. If someone else is liable, he or she must compensate for your personal injury. Cars are compulsorily insured in some countries. As a rule, every motor vehicle is also insured against liability. This insurer will then pay for your personal injury. 

Insurers employ lawyers to handle your personal injury case. Because you yourself do not have the knowledge about recovering personal injury claims, in a number of countries you are entitled to a free personal injury lawyer (Dutch: letselschade advocaat). 

In the Netherlands, for example, but also among other countries, there is a right to a free personal injury lawyer after an accident. So if you happen to a traffic accident in Utrecht, you are entitled to a personal injury lawyer in Utrecht (Dutch: letselschade advocaat Utrecht). 

In the Netherlands you are entitled to a free personal injury lawyer if you have been in a traffic accident and at least one motor vehicle is involved. You don’t have to drive a car or ride a scooter to be eligible for a free personal injury attorney. Even if you are hit by a car or motorcycle on a bicycle, you are entitled to a free personal injury lawyer.

Elsewhere, such as in the US, you will have to retain your own attorney. So if you were involved in an accident, be sure to contact a car or motorcycle accident lawyer immediately.

Passenger damage insurance 

There is of course no liable party in the event of a unilateral traffic accident. But as an entrepreneur you can suffer personal injury in a unilateral traffic accident. Fortunately, you can overcome this damage by taking out passenger damage insurance. This insurance pays out damage without the need for liability. 

For a self-employed person, taking out passenger damage insurance is of great importance. After all, if you get into an accident with damage, you will be left with damage without this insurance. Unless you have occupational disability insurance, of course. You can also appeal to this. However, damage passenger insurance pays for all your damage, not just your loss of income. And with a damage passenger insurance the actual loss of income (up to the insured amount) is paid. This is often not the case with disability insurance. 

Are you an entrepreneur? Then take a good look at which insurance policies you need to insure yourself against loss of income!

Published: March 3, 2021

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