Understand how you need to be covered as self-employed
When you've made the leap to happy self-employedbe aware that your private insurance will no longer cover you.
You can't avoid upgrading a bit here. For a quick overview of your self-employment needs, try this online insurance guidewhere you answer a few questions about your business and map out your needs.
If you want to go a little more in-depth in your search for the right mix, you can follow along here, where we give you an overview of the statutory and most recommended insurances you need to consider as a self-employed person.
Statutory insurance as self-employed
Some business insurance policies are mandatory and others act as a safety net that you can opt in or out of. Exactly which ones you should have depends on how your business is structured.
Let's look at the most common business insurance policies first:
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
Workers' compensation insurance
If you have employees in your company, you must have occupational injury insurance - commonly known as industrial injury insurance. Your insurance obligation applies regardless of whether your employees are salaried or not.
If they are injured while working for you, workers' compensation insurance can help with treatment and rehabilitation costs, compensation for loss of earning capacity, compensation for permanent injury and more. You'll want help with that.
If your company is organized as an ApS, A/S or cooperative, you are also obliged to buy occupational injury insurance that also covers yourself. Regardless of whether you have employees or not.
Forsikringsguiden.dk tells you everything there is worth knowing about occupational injury insurance including how to buy it.
Motor liability insurance
Your regular car insurance doesn't cover your company car. You need motor liability insurance, which for many insurance companies also includes comprehensive insurance.
If you're a self-employed tradesman, you'll probably also need transportation insurance for all the gear you're hauling around on the road.
On the other hand, in many cases you can deduct mileage for tax purposes.
Professional liability insurance
Is professional liability insurance mandatory for you as a self-employed person? No, not really. But it is what you would call a really good idea. Especially if you work with customers, for example as a craftsman.
If you or your employees accidentally damage someone or something while working, your professional liability insurance will cover the damage. Alternatively, you'll be liable for the whole mess yourself.
You can choose to add product liability insurance if you have a product or service that has the potential to cause damage after it has been sold.
Here you can learn more about professional liability insurance and see if it's right for you.
Personal property insurance
As a self-employed person, contents insurance is not compulsory, but if you have a certain amount of inventory and equipment for business use, it's worth looking into.
This is because your private home insurance does not cover this.
Whether contents insurance makes sense for you depends on how much inventory and equipment you have and how much risk you're willing to take. But if you are unlucky enough to suffer a break-in, fire or water damage, contents insurance is your best friend.
Business insurance you can consider
In general, most people are well covered with the above insurance policies. But insurance needs are individual. You can also consider the following business insurances:
Online banking insurance: Covers your losses if your business account is hacked.
Health insurance: Covers advice and treatment at private doctors and private hospitals.
Advisor insurance: Covers your liability if you as an advisor are responsible for a client's wealth loss.
The insurance jungle is big and there are many places to get lost. If you want 100% assurance that you're covered with all the statutory and recommended insurances that apply to your business, contact your insurance company or a trusted business advisor.
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
What does insurance cost as a self-employed person?
The cost of your insurance will of course depend on your needs. For a quick price estimate, you can try this insurance calculatorwhich estimates the price of your business insurance in just a few clicks.
A basic small business insurance policy typically includes statutory workers' compensation insurance and relevant insurances such as professional liability, legal expenses insurance, contents insurance and online banking insurance.
In a concrete example from Topdanmark's insurance calculator, a basic insurance for an ApS company with less than 5 employees costs DKK 469 per month.
For a sole proprietorship without employees, the basic insurance costs 327 DKK per month.
Of course, these are average base prices. Your price depends on your specific needs. At Find-erhvervsforsikring.dk you can compare 3 insurance quotes and choose the offer that suits you best.
Remember to include the cost of your insurance in your fixed costs when setting your salary as self-employed. The list of hidden costs can quickly drain your payroll account if not included in the big picture.
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
Can I deduct business insurance for tax purposes?
Do you have a handle on tax and tax deductions as self-employed?
Tax deductions are one of the little joys of being self-employed. And there's also a little something to be gained from your business insurance.
You can deduct insurance costs that help create, secure or maintain income from your business operations. How should this be interpreted? Typically, it will be your liability insurance or insurance against fire, theft and business interruption.
You can geek out much more in business taxation on the Swedish Tax Agency's website.
Sickness insurance as a self-employed person
As a self-employed person, you are highly dependent on your own ability to perform. That's why illness can become a concern. Fortunately, you're not completely without options.
You can generally apply for sickness benefit after 2 weeks of illness if you are a member of an unemployment insurance fund. You can also sign up for sickness benefit insurance, which gives you access to sickness benefit already after the 1st or 3rd day of illness.
At Virk.dk you can get an overview of which sickness benefit insurance is right for you. It depends, among other things, on the type of business you have.
If you are going on maternity leave as self-employed, you can also apply for parental benefit.
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
Salary insurance as self-employed
If you go on long-term sick leave or become incapacitated for other reasons, you may find yourself in a situation where you have to sell your business or go bankrupt. Phew, that's not pleasant. But lucky for you, there's something called salary protection. It's a type of insurance you can buy from the unemployment fund or your insurance company that can come into effect if you are unable to pay your salary for a period of time.
In 2022, the highest unemployment benefit rate is DKK 19,351 per month. If you need a larger monthly income to keep your head above water in tough times, wage insurance may be the way forward.
With salary insurance, you can secure your income and pay your fixed expenses when the shit hits the fan while you take a deep breath and find your feet again. Because even if you're down, you're not necessarily out. Check out our guide to keeping customerseven if you have to turn the key.
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
Understand how you need to be covered as self-employed
When you've made the leap to happy self-employedbe aware that your private insurance will no longer cover you.
You can't avoid upgrading a bit here. For a quick overview of your self-employment needs, try this online insurance guidewhere you answer a few questions about your business and map out your needs.
If you want to go a little more in-depth in your search for the right mix, you can follow along here, where we give you an overview of the statutory and most recommended insurances you need to consider as a self-employed person.
Statutory insurance as self-employed
Some business insurance policies are mandatory and others act as a safety net that you can opt in or out of. Exactly which ones you should have depends on how your business is structured.
Let's look at the most common business insurance policies first:
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
Workers' compensation insurance
If you have employees in your company, you must have occupational injury insurance - commonly known as industrial injury insurance. Your insurance obligation applies regardless of whether your employees are salaried or not.
If they are injured while working for you, workers' compensation insurance can help with treatment and rehabilitation costs, compensation for loss of earning capacity, compensation for permanent injury and more. You'll want help with that.
If your company is organized as an ApS, A/S or cooperative, you are also obliged to buy occupational injury insurance that also covers yourself. Regardless of whether you have employees or not.
Forsikringsguiden.dk tells you everything there is worth knowing about occupational injury insurance including how to buy it.
Motor liability insurance
Your regular car insurance doesn't cover your company car. You need motor liability insurance, which for many insurance companies also includes comprehensive insurance.
If you're a self-employed tradesman, you'll probably also need transportation insurance for all the gear you're hauling around on the road.
On the other hand, in many cases you can deduct mileage for tax purposes.
Professional liability insurance
Is professional liability insurance mandatory for you as a self-employed person? No, not really. But it is what you would call a really good idea. Especially if you work with customers, for example as a craftsman.
If you or your employees accidentally damage someone or something while working, your professional liability insurance will cover the damage. Alternatively, you'll be liable for the whole mess yourself.
You can choose to add product liability insurance if you have a product or service that has the potential to cause damage after it has been sold.
Here you can learn more about professional liability insurance and see if it's right for you.
Personal property insurance
As a self-employed person, contents insurance is not compulsory, but if you have a certain amount of inventory and equipment for business use, it's worth looking into.
This is because your private home insurance does not cover this.
Whether contents insurance makes sense for you depends on how much inventory and equipment you have and how much risk you're willing to take. But if you are unlucky enough to suffer a break-in, fire or water damage, contents insurance is your best friend.
Business insurance you can consider
In general, most people are well covered with the above insurance policies. But insurance needs are individual. You can also consider the following business insurances:
Online banking insurance: Covers your losses if your business account is hacked.
Health insurance: Covers advice and treatment at private doctors and private hospitals.
Advisor insurance: Covers your liability if you as an advisor are responsible for a client's wealth loss.
The insurance jungle is big and there are many places to get lost. If you want 100% assurance that you're covered with all the statutory and recommended insurances that apply to your business, contact your insurance company or a trusted business advisor.
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
What does insurance cost as a self-employed person?
The cost of your insurance will of course depend on your needs. For a quick price estimate, you can try this insurance calculatorwhich estimates the price of your business insurance in just a few clicks.
A basic small business insurance policy typically includes statutory workers' compensation insurance and relevant insurances such as professional liability, legal expenses insurance, contents insurance and online banking insurance.
In a concrete example from Topdanmark's insurance calculator, a basic insurance for an ApS company with less than 5 employees costs DKK 469 per month.
For a sole proprietorship without employees, the basic insurance costs 327 DKK per month.
Of course, these are average base prices. Your price depends on your specific needs. At Find-erhvervsforsikring.dk you can compare 3 insurance quotes and choose the offer that suits you best.
Remember to include the cost of your insurance in your fixed costs when setting your salary as self-employed. The list of hidden costs can quickly drain your payroll account if not included in the big picture.
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
Can I deduct business insurance for tax purposes?
Do you have a handle on tax and tax deductions as self-employed?
Tax deductions are one of the little joys of being self-employed. And there's also a little something to be gained from your business insurance.
You can deduct insurance costs that help create, secure or maintain income from your business operations. How should this be interpreted? Typically, it will be your liability insurance or insurance against fire, theft and business interruption.
You can geek out much more in business taxation on the Swedish Tax Agency's website.
Sickness insurance as a self-employed person
As a self-employed person, you are highly dependent on your own ability to perform. That's why illness can become a concern. Fortunately, you're not completely without options.
You can generally apply for sickness benefit after 2 weeks of illness if you are a member of an unemployment insurance fund. You can also sign up for sickness benefit insurance, which gives you access to sickness benefit already after the 1st or 3rd day of illness.
At Virk.dk you can get an overview of which sickness benefit insurance is right for you. It depends, among other things, on the type of business you have.
If you are going on maternity leave as self-employed, you can also apply for parental benefit.
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
Salary insurance as self-employed
If you go on long-term sick leave or become incapacitated for other reasons, you may find yourself in a situation where you have to sell your business or go bankrupt. Phew, that's not pleasant. But lucky for you, there's something called salary protection. It's a type of insurance you can buy from the unemployment fund or your insurance company that can come into effect if you are unable to pay your salary for a period of time.
In 2022, the highest unemployment benefit rate is DKK 19,351 per month. If you need a larger monthly income to keep your head above water in tough times, wage insurance may be the way forward.
With salary insurance, you can secure your income and pay your fixed expenses when the shit hits the fan while you take a deep breath and find your feet again. Because even if you're down, you're not necessarily out. Check out our guide to keeping customerseven if you have to turn the key.
Stay insured while working with Factofly
Use Factofly to get paid and invoice without your own company. You are fully covered while working through our insurance policies. Create a free profile and get started right away.
