Insurance for the self-employed - which is the right one?

Since there are many different types of self-employment and just as many industries, insurance coverage must always be calculated individually in order to choose the right insurance policy and coverage amount. Therefore, we can only give an overview of different products and show in which cases they make sense. If you want to know more, you can calculate your insurance in a few minutes online or in a conversation with an insurance expert.

Business or professional liability insurance - what's the difference?

Commercial liability insurance is probably the most important coverage for the self-employed. With many insurers, public liability insurance and professional liability insurance are often only distinguished by the name. In other cases, however, the insurances cover completely different damages. With insureQ and many other insurers, public liability insurance covers bodily injury, property damage and consequential financial loss, but not "pure financial loss", which can arise from consulting errors. These, in turn, are covered by a professional liability insurance, which is often also referred to as pecuniary loss liability insurance.

Public liability insurance is particularly recommended in direct contact with people, as accidents or property damage can quickly occur here. Professional liability insurance is particularly useful if your own activities can cause damage to the assets of third parties or for activities in the medical sector.

Both liability insurance policies have passive legal protection that defends against unjustified or excessive claims for damages. In some cases, it makes sense to take out both business and professional liability insurance. It is also important to note that an insurance policy should always be specifically tailored to ones industry and company in order to actually provide the desired protection. Using the following examples, we would like to show which damages are covered by a public or professional liability insurance.

Examples of public liability insurance in practice

1. Personal injury: a customer misses a step in your office or store, falls and injures her knee. She has to be taken to hospital and claims compensation from you. The accusation: You should have marked the step. Without insurance, you have to pay for the damage.

2. Property damage: on a business trip, you damage a partner's laptop by accidentally spilling your coffee on it. He asks you to pay for the damage, recover the data and replace the device. This can be expensive for you if you have failed to ensure that you are covered by public liability insurance.

3. Consequential financial loss: the injury from our first example means that your business partner cannot work for several weeks and thus loses a large order. He reclaims the resulting damage from you.

Examples of professional liability insurance in practice

Financial loss: In your function as a consultant, you name your client an incorrect deadline for the application for subsidies. It is no longer possible to apply for these funds later. The business partner holds you responsible for the damage and demands compensation. Professional liability insurance covers these costs for you or fends off unjustified claims (= passive legal protection) - even in court if necessary.

Business legal protection - because anyone can get into a legal dispute

Alongside commercial liability insurance, business legal protection - also known as commercial legal protection - is the most important precaution against unexpected financial burdens. After all, it's easier to get into a legal dispute than you think - for example, if a disappointed business partner takes action against you. In such a case, commercial legal protection insurance provides you with a lawyer who can give you legal advice and covers all costs arising from a legal dispute. There are different components that should be included in your commercial legal protection policy, depending on the nature of your self-employment. Here are a few examples:

• Extended criminal legal protection: Protects you legally if you are accused of intentionally breaking the law - e.g. if you apply for funds incorrectly.

• Employment law protection: Supports you in the event of disputes in the area of employment law - e.g. if you employ a staff member who takes legal actions against their dismissal.

• Real estate legal protection: Covers all legal disputes in connection with commercially used real estate - for example, if a landlord insists on evicting you from your office.

• Traffic legal protection: Provides you with back-up if a legal dispute arises over a company vehicle - e.g. in the event of defects of a purchased vehicle.

Cyber insurance - for commercial Internet use

Whether with employees or as a single self-employed person, anyone who uses the Internet - even if only for sending e-mails - runs the risk of unauthorized persons gaining access to sensitive customer data or losing important information and documents. Cyber insurance not only covers the costs following an attack, but also allows data to be restored and, with the advice of IT and PR experts, ensures that damage does not occur in the first place or that consequences are mitigated.

Contents insurance - important for warehouses and offices

Storms, hailstorms, fire, tap water or a burglary can cause significant damage. If you are self-employed and work in an office or have a warehouse in use, you should make sure that your equipment, electronics and inventory are insured. If this insurance is not in place in the event of a loss, self-employed individuals will be held responsible for the damage incurred. Contents insurance covers these costs and ensures that the original condition of a warehouse or office can be restored. The benefits included are comparable to those of a household insurance policy in the private sector. Contents insurance also pays the downtime costs in the event of a business interruption due to damage caused by the aforementioned reasons.