Third party liability insurance and legal assistance for ZZP

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Third party liability insurance and legal assistance for ZZP

As a self-employed entrepreneur, you certainly hope that running your own business will be trouble-free and without major unforeseen events and related costs. But unfortunately, as the Dutch proverb says, "an accident stays in a small corner", i.e. it comes when we least expect it. And it is worth being prepared for such an event - appropriate insurance will help you with this. Which one? We will tell you about it in our article .

You will learn from it:

  1. What is corporate liability insurance and who should buy it?
  2. When is professional liability insurance necessary or desirable?
  3. Legal aid for ZZP - for whom and is it worth it?

 

 1. What is legal liability insurance for companies and who should buy it?

In many cases, legal liability insurance for companies is not mandatory for ZZP. However, if your business involves manual labor, manufactures products or materials, or has a lot of personal contact with customers, it's worth considering.

It protects your company against liability for damage resulting from damage to a client's property or person. Therefore, it is insurance that covers the costs of physical damage and its consequences. Situations we can think about here are, for example, damage to a water pipe in the wall as a result of drilling a hole, or a broken arm by a client who tripped over a cable in your office.

Note: This insurance is often required if you want to rent office space. It also happens that the client makes having legal liability insurance a condition for cooperation.

 

2. When is professional indemnity insurance (BAV) necessary or desirable?

Professional liability insurance protects your company against liability for financial losses incurred by third parties (e.g. contractors) and arising directly as a result of error or negligence in the performance of your profession.

For certain professional groups, professional liability insurance is required by law. These are:

  • financial advisors,
  • lawyers,
  • notaries,
  • accountants,
  • architects.

However, if you work in other professions related to consulting, such as ICT specialist, life coach, HR specialist and the like - it is worth taking care of this insurance yourself. Even small errors or omissions resulting from your profession can have large financial consequences for your client, which in turn may affect your company!

Note: More and more often, having legal liability insurance is a condition for membership in professional organizations associating entrepreneurs. Also, intermediary agencies and clients - and certainly serious contractors such as government organizations - often require entrepreneurs to insure their own liability before starting cooperation.

 

3. Legal aid for ZZP - for whom and is it worth it?

As a ZZP entrepreneur, you deal with clients, suppliers and customers every day. Where people work, accidents happen and mistakes are made. As a result, there may be a conflict between the parties that cannot be easily resolved. Therefore, many entrepreneurs, fearing long-term and costly court procedures, decide to take out legal assistance insurance for ZZP.

Such insurance is not obligatory, but if you have it, you can count on help and legal advice in case of conflicts arising during or as a result of your work. Depending on the insurer, this assistance may also include, for example, mediation between the parties to avoid court procedures.

Is such insurance a reasonable choice for your company? It depends. If you already have legal and/or professional liability insurance, it is sufficient in many cases. In the event of damage, the insurer must determine the fault and scope of liability of the parties. Often, if necessary, he or she takes over the representation of the insured company in court. It is important to know exactly what the scope of action is and what the procedures of your insurer are in such situations. Knowing them, you will be able to consciously decide whether you need additional legal aid insurance.

 

Summary 

As a person running your own business, you must take care to protect your company against the consequences of unforeseen situations. Taking out legal and professional liability insurance and/or legal assistance insurance can be an effective way to minimize the risks inherent in running your own ZZP business.

So don't wait and call us today! Our advisors are waiting for your call!