It is important before establishing a business to carefully determine what kinds of insurance the business and the entrepreneur need. It is worth the entrepreneur, together with a representative from an insurance company, assessing the risks relating to the new business and how these can be reduced with the help of insurance.
The only mandatory form of insurance for an entrepreneur is personal pension insurance (as specified by the Self-Employed Persons’ Pension Act), if the entrepreneur’s work-related income exceeds EUR 6,896.69 in a year (2011 figure) and the business has operated for at least four months.
Optional insurance includes the following, among others:
The entrepreneur’s voluntary accident insurance
• this also covers leisure time
• this is a deductible cost for thebusiness
Business-interruption insurance
• the aim is to safeguard against a loss of income arising from interruptions
to the business
Personal liability insurance
• compensates, with certain conditions, losses caused to a third party as well as rectification of the loss and any legal expenses
• often a customer, for example in the construction and cleaning sectors, will require that the supplier has personal liability insurance.
Legal-expenses insurance
• covers legal expenses that may arise from, for example
• supply agreements, sales contracts or piecework contracts
• disagreements on the validity of balances payable or receivable
• disputes on dismissal of staff or wages and salaries
• rental-agreement relationships
It is also good to insure property and business premises against theft, burglaries, fire and water damage. Ask for quotes from various insurance companies, thoroughly familiarize yourself with the terms of their policies and only then make a final decision on what insurance you will take.
Examples of Insurance companies:
More info:
>>The Finnish Pension Security
