Which insurances founders need - and which they don't

Some insurance policies are essential for the self-employed. But even if you are not obliged to do so, founders should protect themselves against certain risks that could threaten their existence. But which insurance policies are a must, and which are also useful?

Insurance cover: particularly important for founders

Self-employed people should think about insurance immediately, especially when setting up a business, because under certain circumstances incidents such as damage caused, breakdowns, legal disputes and more can threaten the continued existence of the business. Insurance mitigates these risks. However, it is not always immediately obvious which insurances actually make sense for whom.

First of all, self-employed people should weigh up which risks pose a particular threat to their existence - insurance should be taken out for such cases directly when starting up. In addition, they should analyze which incidents could also damage the company and which risks may be negligible (for the time being).

All-round protection: personal and commercial insurance

Founders must not only consider the entrepreneurial risk when choosing their insurance, but also take their personal risk into account. After all, if self-employed people are unable to work for a short or long period of time, this can have consequences for the company under certain circumstances.

These personal insurances are particularly important:

• Health insurance: Also compulsory for the self-employed in Germany - can be covered by statutory or private insurance.
• Sickness benefit or daily sickness allowance insurance: Covers absences.
• Occupational disability insurance: Safeguards your standard of living even in the event of long-term disability.
• Pension insurance: Depending on the occupational group, this may even be mandatory - statutory or private insurance is freely selectable.

Certain commercial insurances are generally particularly important in order to safeguard the company's usual operations and reduce the entrepreneurial risk. These include, for example

• Public liability insurance: Covers damage caused by the company - without insurance, self-employed persons are liable without limit.
• Business interruption insurance: Reduces risks such as interruptions to business operations.
• Legal expenses insurance: Protects against costs caused by legal disputes.

Individual needs: Different depending on the industry

Not every industry involves the same risks and therefore requires the same insurance cover. Depending on the professional group or company purpose, additional insurance may be mandatory - and individual supplementary insurance policies may be particularly useful

For example, personal insurance can be supplemented : If there is a high risk of injury, as is often the case in craft businesses, for example, appropriate accident insurance is recommended. If self-employed people travel a lot on business for meetings, conferences etc., foreign travel health insurance may be appropriate.

Additional commercial insurance should also be considered. For tax consultants or financial service providers, for example, property damage liability insurance may also be useful. Founders of a trading company, on the other hand, should pay particular attention to their inventory or stock and insure it against burglary or natural hazards with building or contents insurance.

Advice on comprehensive insurance benefits

Start-ups often do not have an overview of which insurances are required by law and which are also useful. In addition, other questions usually take center stage. This is why founders should seek advice from an insurance broker. This saves time that is better invested in sales, marketing or business processes.

The experts at AXA Versicherung have supported many business start-ups and are therefore familiar with the industry-specific requirements. They speak the language of trade, commerce, gastronomy, construction, agriculture and many other professional groups. Their goal: to ensure that all risks are covered in the best possible way. AXA's professional protection serves this purpose. Because in the worst case, the high costs of underinsurance can jeopardize the existence of the company. At the same time, the fair advice provided by AXA brokers prevents young companies from being overinsured and incurring higher costs than necessary.

Here you can find more information about AXA insurance for the self-employed