Why do you need turnover data to insure your business?
For business insurance, your turnover data is often requested. This is important to calculate the of the premium. Because the higher the turnover, the higher the risk. But the turnover can also But the turnover can also (temporarily) decrease. In this blog we will tell you what to look out for and how to keep premiums as low as possible. premiums as low as possible. Especially for the disability insurance this is very important. important.
Which insurances?
For SMEs and self-employed persons, there are 4 important insurances for which you need to know the turnover data of your company:
- Corporate Liability Insurance: Covers the damage your company causes to your customer or client.
- Professional indemnity insurance: In the event of negligence or mistakes on your part, which cause your client to suffer loss or miss out on turnover, this insurance offers help.
- Legal expenses insurance: If you get involved in a conflict with a client or customer, you can use some legal assistance.
- Occupational disability insurance: As an entrepreneur, you are not entitled to any government benefit in case of occupational disability. If you think 'that won't happen to me', you take a big risk with your income and the survival of your company. Disability insurance helps you through difficult times.
Estimating turnover
The insurance company always wants to know your basic data plus the expected turnover of your company. This is determined by the turnover of previous years. If you are a starting entrepreneur, you can make a turnover estimate. You are then always insured, even if it turns out that your company achieves a much higher turnover in the first year than you had thought.
Annual recalculation
For the first three policies, the insurance company will automatically send you a recalculation form every year, or once every three years. On this form, you provide the current turnover data. If there are significant changes, this will obviously affect the amount of your premium. The fourth insurance, disability insurance, works a little differently. For this you have to be alert yourself.
Disability insurance yourself
Disability insurance is very important for self-employed entrepreneurs, but it is also the most difficult insurance to maintain properly', says Anita, office employee at insurance specialist Cheapp: 'Of course you don't want to pay too much, but you certainly don't want to be faced with surprises if you become ill. And there are many factors that influence the amount of the premium and the benefit'. What do you need to keep an eye on?
Checklist:
- The duration of the insurance: The maximum end age for many professions is 67 years. But you can change this yourself, after all you are a self-employed person.
- The insured amount: Insurers set a maximum for the height of the insured amount. In general, you may not insure more than 80% of your average income (gross). You can adjust this amount in the meantime.
- Has anything changed in the past year with regard to your financial reserves or your family situation? Then you can also adjust the insurance.
- If you are temporarily unable to find an assignment or want to take a break, you can suspend the insurance for a maximum of one year. You will then pay less premium but will not receive any benefit.
Business insurance from Alpina
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