The 5 most important insurances for founders



With the step into self-employment also arises the question of insurance against associated risks. The decision for and against certain insurances is anything but easy. After all, each of these costs money, and that is usually scarce at the beginning of a business start-up.

At the same time, the negative consequences can be severe if you fail to provide sufficient security for yourself. But which insurances are necessary from the beginning and which can be postponed until the business is up and running?? In the following article we present the five most important insurances for founders.

1. Health insurance

With the start of self-employment, you have the choice of whether to remain in the statutory health insurance (if you were previously insured there) or opt for private health insurance. In contrast to employees, you do not have to observe an income limit when switching, unless you work as an artist, publicist, farmer or gardener.

Which option is better for you depends on various factors. For many founders, private health insurance has significant advantages. Because in this case you have the possibility to pay only for the services you need most urgently. You can even save money this way.

If you have survived the hot phase of the start-up, you can switch to a more powerful tariff. Depending on age and state of health, the PKV also offers more benefits than the GKV. In the GKV, on the other hand, family members without income are also insured free of charge.

2. Pension insurance

While there are insurances for founders that you can safely postpone when starting your own business, you should consider retirement provision as early as possible. In this case time is money.

Keep the following points in mind:

  • Members of certain professions are still required to pay pension insurance even if they are self-employed or freelancers. This includes, for example, artists and publicists, teachers, trainers, nurses and midwives.
  • If this does not apply to you, you can make voluntary contributions to the statutory pension scheme or a private pension plan.

If you pay into the statutory pension scheme, you can take advantage of the Riester pension scheme. The so-called Rurup pension can also be considered as an alternative to private old-age provision. In addition, you have various other options for providing for your old age. Whichever you choose, don't wait too long to do so.

3. Occupational disability insurance

Absolute security does not exist. With an occupational disability insurance, however, you insure against an emergency that occurs more frequently than many people think. In fact, occupational disability arises in most cases from illnesses. With the appropriate insurance, you will receive a monthly pension in the event of an emergency.

Keep in mind when purchasing disability insurance:

  • The earlier you take out the insurance, the lower the premiums are.
  • Read the contract conditions carefully. In some cases, insurers may insist on a change of occupation in the event of an emergency.

You do not always get occupational disability insurance without further ado. In the case of serious pre-existing conditions, the search is often difficult. Then you have the possibility to exclude certain illnesses from the insurance coverage in order to be accepted after all.

4. Public liability

Public liability insurance is a useful supplement to private liability insurance for founders. It takes effect in the event of claims for damages from suppliers, customers or employees and is offered in different variants. Which one you choose depends primarily on ..

  • The industry in which you work and the associated risks.
  • the value of the equipment and resources you handle.
  • the size of your business.

Get good advice when choosing a business liability insurance, also regarding the coverage amount. Many founders are not fully aware of the risks and dangers associated with their profession.

Tip: A good supplement to business liability insurance is professional liability in some industries. It takes effect when, for example, financial damage is caused by incorrect advice. Additionally, product or environmental liability may be an option.

5. Legal expenses insurance

Legal proceedings can be expensive. As an entrepreneur, you are quickly confronted with such a situation, for example if an employee wants to take action against his dismissal or if you have to enforce compensation for a loss of earnings. In such a case, legal protection insurance will cover court costs, litigation costs and legal fees.

Here, too, pay attention to the differences between various offers. A legal protection insurance can usually be adapted to one's own needs according to the modular principle.

6. Weigh carefully

There are other insurances for founders, depending on your personal and professional situation resp. can be useful in your line of business. This includes voluntary unemployment insurance in case things suddenly don't work out as they should.

Here, as in many other aspects of setting up a business, the following applies: Seek advice when making your choice.
An expert will not only help you choose the right insurance policies, but also tailor them to your specific needs.

They are looking for support? We can help you choose the right insurance and answer many other questions about setting up a business. Contact us here for a non-binding initial consultation.

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