insurance as self-employed
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By 7.2 min readLast Updated: 19. September 2023

Get a handle on how you should be covered as a self-employed person

When you have jumped out as happy self employed, you should be aware that your private insurance no longer covers you.

You can't avoid upgrading a bit here. If you want a quick overview of your needs as a self-employed person, you can try this online insurance guide, where you answer a few questions about your company and get your needs mapped out.

If you want to go a little more in depth in the search for the right mix, you can follow along here, where we give you an overview of the legally required and most recommended insurances, which you as a self-employed person have to deal with.

Contents

Statutory insurance as self-employed

  • Workers' compensation insurance
  • Motor liability insurance
  • Professional liability insurance
  • Property insurance

Business insurance you can consider

Insurance cost

Deduction for business insurance

Insurance against illness

Salary protection

Statutory insurance as self-employed

Some commercial insurances are required by law and others act as a safety net, which you can choose to turn on or off. Exactly which ones you need depends on how your business is set up. 

Let's look at the most common commercial insurance policies first:

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Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

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Workers' compensation insurance

If you have employees in your company, you must have occupational injury insurance – in everyday terms, workers' compensation insurance. Your insurance obligation applies here, regardless of whether your employees are paid or not.

If they are injured while working for you, workers' compensation insurance can help with the costs of treatment and rehabilitation, compensation for lost working capacity, compensation for permanent disability and the like. You would like help with that. 

If your company is organized as an ApS, A/S or cooperative, you are also obliged to buy workers' compensation insurance, which also covers yourself. Whether you have employees or not.

Forsikringsguiden.dk tells you everything there is worth knowing about workers compensation insurance incl. how to buy it.

Motor liability insurance

Your regular car insurance does not cover your company car. There you must have motor liability insurance, which with many insurance companies also includes comprehensive insurance. 

If you are a self-employed craftsman, you probably also need to have transport insurance for all the equipment you carry around on the roads. 

On the other hand, in many cases you can deduct driving from tax.

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 outside with customers, e.g. as a craftsman.

If you or your employees injure someone or something while you are working, your professional liability insurance will cover the damages. Alternatively, you yourself are responsible for all the misery.

You can choose to expand with product liability insurance if you have a product or service that could potentially cause damage after it has been sold. 

You can find out more here professional liability insurance and see if it's for you.

Property insurance

Property insurance is not required by law as a self-employed person, but if you have a certain amount of furniture and equipment for business use, it is relevant to take a closer look.

Your private contents insurance does not cover here. 

Whether chattel insurance makes sense for you depends of course on how much furniture and equipment you have and how big a risk you yourself are prepared to bear. But should you be unlucky enough to be hit by a burglary, fire or water damage, property insurance is your best friend.

Business insurance you can consider

In general, most people are well covered by the above insurances. But insurance needs are individual. You can also consider the following commercial insurances:

Online banking insurance: Covers your loss 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 to blame for a client's loss of property.

The insurance jungle is big and there are many places where you can get lost. Want 100% assurance that you are covered by all the statutory and recommended insurances that apply to exactly your business, so get hold of your insurance company or a business adviser you trust.

create free user

Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

create free user

How much does insurance cost as a self-employed person?

The price of your insurance obviously depends on your needs. If you want a quick estimate of the price, you can try this insurance calculator, which estimates a price for your commercial insurance with just a few clicks.

A basic insurance for smaller companies typically contains the statutory workers' compensation insurance as well as relevant insurances such as professional liability, legal aid insurance, personal property insurance and online banking insurance. 

In a concrete example from Topdanmark's insurance calculator, basic insurance for an ApS company with less than 5 employees costs DKK 469 per person. month.

For a sole proprietorship without employees, the basic insurance costs DKK 327 per person. month.

These are, of course, average base prices. Your price depends on your specific needs. At Find-erhvervsforsikring.dk you can compare 3 insurance offers and choose the offer that suits you best.

Remember to factor the price of your insurance into your fixed costs when you set yours salary as self-employed. The list of hidden costs can quickly drain the salary account if it is not included in the big calculation.

create free user

Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

create free user

Can I deduct business insurance from tax?

Do you have it under control? tax and tax deductions as a self-employed person?

Tax deductions are one of the small joys we have as self-employed people. And so there is also little to be gained from your business insurance. 

You can deduct expenses for insurances that help to create, secure or maintain income from the company's operations. How should it then be interpreted? This will typically be about your liability insurance or insurance against fire, theft and operating loss.

You can geek out a lot more business taxation on the Tax website.

Insurance against illness as a self-employed person

As a self-employed person, you are very dependent on your own ability to make an effort. Therefore, illness may well become a concern. Fortunately, you are not completely without options.

You can basically apply for sickness allowance after 2 weeks of illness if you are a member of an A-kasse. 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 there is the right one for you. It depends, among other things, on the type of business you have.

If you are going on maternity leave as a self-employed person, you also have the opportunity to apply maternity allowance.

create free user

Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

create free user

Salary protection as a self-employed person

If you are on long-term sick leave or unable to work for other reasons, you may end up in a situation where you have to sell the company or go bankrupt. Phew, it wasn't nice. But luckily for you, there is something called salary guarantee. It is a type of insurance that you can purchase from A-kassen or your insurance company and which can come into force if you are unable to pay yourself a salary for a period of time.

In 2022, the highest daily allowance rate is DKK 19,351 per month. If you need a larger monthly income, to keep afloat in tight times, salary guarantee may be the way forward.

With salary insurance, you can therefore secure your income and pay your fixed expenses when the whole crap is over, while you take a deep breath and find your feet again. Because even if you are down, you are not necessarily out. Check out ours guide to retaining customers, even if you have to turn the key.

create free user

Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

create free user
insurance as self-employed
By 7.2 min readLast Updated: 19. September 2023

Get a handle on how you should be covered as a self-employed person

When you have jumped out as happy self employed, you should be aware that your private insurance no longer covers you.

You can't avoid upgrading a bit here. If you want a quick overview of your needs as a self-employed person, you can try this online insurance guide, where you answer a few questions about your company and get your needs mapped out.

If you want to go a little more in depth in the search for the right mix, you can follow along here, where we give you an overview of the legally required and most recommended insurances, which you as a self-employed person have to deal with.

Contents

Statutory insurance as self-employed

  • Workers' compensation insurance
  • Motor liability insurance
  • Professional liability insurance
  • Property insurance

Business insurance you can consider

Insurance cost

Deduction for business insurance

Insurance against illness

Salary protection

Statutory insurance as self-employed

Some commercial insurances are required by law and others act as a safety net, which you can choose to turn on or off. Exactly which ones you need depends on how your business is set up. 

Let's look at the most common commercial insurance policies first:

create free user

Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

create free user
Workers' compensation insurance

If you have employees in your company, you must have occupational injury insurance – in everyday terms, workers' compensation insurance. Your insurance obligation applies here, regardless of whether your employees are paid or not.

If they are injured while working for you, workers' compensation insurance can help with the costs of treatment and rehabilitation, compensation for lost working capacity, compensation for permanent disability and the like. You would like help with that. 

If your company is organized as an ApS, A/S or cooperative, you are also obliged to buy workers' compensation insurance, which also covers yourself. Whether you have employees or not.

Forsikringsguiden.dk tells you everything there is worth knowing about workers compensation insurance incl. how to buy it.

Motor liability insurance

Your regular car insurance does not cover your company car. There you must have motor liability insurance, which with many insurance companies also includes comprehensive insurance. 

If you are a self-employed craftsman, you probably also need to have transport insurance for all the equipment you carry around on the roads. 

On the other hand, in many cases you can deduct driving from tax.

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 outside with customers, e.g. as a craftsman.

If you or your employees injure someone or something while you are working, your professional liability insurance will cover the damages. Alternatively, you yourself are responsible for all the misery.

You can choose to expand with product liability insurance if you have a product or service that could potentially cause damage after it has been sold. 

You can find out more here professional liability insurance and see if it's for you.

Property insurance

Property insurance is not required by law as a self-employed person, but if you have a certain amount of furniture and equipment for business use, it is relevant to take a closer look.

Your private contents insurance does not cover here. 

Whether chattel insurance makes sense for you depends of course on how much furniture and equipment you have and how big a risk you yourself are prepared to bear. But should you be unlucky enough to be hit by a burglary, fire or water damage, property insurance is your best friend.

Business insurance you can consider

In general, most people are well covered by the above insurances. But insurance needs are individual. You can also consider the following commercial insurances:

Online banking insurance: Covers your loss 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 to blame for a client's loss of property.

The insurance jungle is big and there are many places where you can get lost. Want 100% assurance that you are covered by all the statutory and recommended insurances that apply to exactly your business, so get hold of your insurance company or a business adviser you trust.

create free user

Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

create free user

How much does insurance cost as a self-employed person?

The price of your insurance obviously depends on your needs. If you want a quick estimate of the price, you can try this insurance calculator, which estimates a price for your commercial insurance with just a few clicks.

A basic insurance for smaller companies typically contains the statutory workers' compensation insurance as well as relevant insurances such as professional liability, legal aid insurance, personal property insurance and online banking insurance. 

In a concrete example from Topdanmark's insurance calculator, basic insurance for an ApS company with less than 5 employees costs DKK 469 per person. month.

For a sole proprietorship without employees, the basic insurance costs DKK 327 per person. month.

These are, of course, average base prices. Your price depends on your specific needs. At Find-erhvervsforsikring.dk you can compare 3 insurance offers and choose the offer that suits you best.

Remember to factor the price of your insurance into your fixed costs when you set yours salary as self-employed. The list of hidden costs can quickly drain the salary account if it is not included in the big calculation.

create free user

Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

create free user

Can I deduct business insurance from tax?

Do you have it under control? tax and tax deductions as a self-employed person?

Tax deductions are one of the small joys we have as self-employed people. And so there is also little to be gained from your business insurance. 

You can deduct expenses for insurances that help to create, secure or maintain income from the company's operations. How should it then be interpreted? This will typically be about your liability insurance or insurance against fire, theft and operating loss.

You can geek out a lot more business taxation on the Tax website.

Insurance against illness as a self-employed person

As a self-employed person, you are very dependent on your own ability to make an effort. Therefore, illness may well become a concern. Fortunately, you are not completely without options.

You can basically apply for sickness allowance after 2 weeks of illness if you are a member of an A-kasse. 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 there is the right one for you. It depends, among other things, on the type of business you have.

If you are going on maternity leave as a self-employed person, you also have the opportunity to apply maternity allowance.

create free user

Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

create free user

Salary protection as a self-employed person

If you are on long-term sick leave or unable to work for other reasons, you may end up in a situation where you have to sell the company or go bankrupt. Phew, it wasn't nice. But luckily for you, there is something called salary guarantee. It is a type of insurance that you can purchase from A-kassen or your insurance company and which can come into force if you are unable to pay yourself a salary for a period of time.

In 2022, the highest daily allowance rate is DKK 19,351 per month. If you need a larger monthly income, to keep afloat in tight times, salary guarantee may be the way forward.

With salary insurance, you can therefore secure your income and pay your fixed expenses when the whole crap is over, while you take a deep breath and find your feet again. Because even if you are down, you are not necessarily out. Check out ours guide to retaining customers, even if you have to turn the key.

create free user

Be insured while working with Factofly

Use Factofly to get paid and invoice without your own company. You are fully covered during work through our insurances. Create a free profile and get started right away.

create free user