Insurance: practical guides and steps

Insurance transfers a business risk to an insurer. For a self-employed person or an SME, a single claim could otherwise threaten the whole activity. This page helps you tell mandatory, useful and unnecessary cover apart.

Mandatory insurance

Belgian law imposes few policies, but they matter. Here are the main cases.

• Workplace accident insurance, from the first employee onwards.
• Professional liability for some regulated professions, such as architects.
• Strict liability for fire and explosion in certain places open to the public.
• Motor insurance for every company vehicle.

Outside these cases, the law demands nothing. Yet a customer or landlord often asks for an insurance certificate. Our article on professional insurance for the self-employed reviews these obligations.

Useful cover for a business

Beyond the legal minimum, a few policies truly protect the activity. General liability covers damage caused to third parties. Professional liability rather covers errors in advice or design. The two guarantees therefore complement each other.

Legal protection insurance also funds lawyers and proceedings. It helps, for example, against a customer who does not pay. Read our comparison of legal protection insurance before you choose.

Company directors also have good reason to protect themselves. Indeed, their personal liability may come into play. A dedicated D&O policy addresses this risk. Our article on director liability explains what is at stake.

Also think about your own income. When ill, a self-employed person often receives modest benefits. Guaranteed income insurance then tops up this safety net.

Finally, IT incidents hit small structures too. A data leak can lead to significant costs. Cyber insurance then complements your personal data protection measures.

Points to check before signing

You judge a policy on its details. First, read the list of exclusions. Then check the compensation limits and the deductible. Also describe your real activity precisely. An incomplete declaration can reduce the payout after a claim.

Think about your commercial contracts as well. They often set liability caps that should match your policies. See the essential commercial contracts to align the two. Moreover, the regulator, the FSMA, publishes useful information on insurance products.

Where to start with insurance

Start from your real risks, not from a standard offer. Ask yourself three questions. What happens if a customer suffers damage? What if you can no longer work? Who pays for a dispute lasting several months?

Next, compare at least two quotes. A broker can set offers from several insurers side by side. Always ask for the full general terms, though, not just a summary. Also review each insurance policy every year, since your activity evolves. For an overall view, read our file on the legal protection of your business.