Career & Legal Advice

What insurance cover should you have as a self-employed person?


As an employee your workplace will have various insurance policies covering you when you are at work. But if you’re self-employed with your own business, you’ll have to make sure yourself that you are properly insured. IDA will help you to find out what insurance you should take out for your business.

You’re almost certainly in complete control of private insurance policies. You probably have house contents, personal accident, and travel insurance and this saves you a lot of worry. As a self-employed consultant, freelancer or entrepreneur, it’s important that you also have business insurance. Some policies are compulsory by statute and others are voluntary, but important for you and your business if the worst should happen.

Statutory insurance

Let’s start with the compulsory insurance, you have to take out. If you have a business with one or more employees, workplace injuries insurance is required by law. Workplace injuries insurance is statutory for all employers with part-time and full-time employees, if they suffer an accident during working hours.

What is a workplace accident?

  • Physical or psychological personal injury
  • The accident has taken place because of work, or the conditions under which the work took place
  • The injury must be either immediate or within five days of the incident

Occupational diseases insurance is also compulsory if you have employees. You can also take insurance out for yourself, but this is not compulsory. An occupational disease is considered as a disease or condition caused either by work or the conditions under which the work took place. Occupational diseases are not covered via an insurance company, but by registering with Labour Market Insurance (Arbejdsmarkedets Erhvervssikring - AES).

If you have a car that you use for work, you will have to take out fully comprehensive motor insurance, and if you run your self-employed business from premises subject to a mortgage or loan, you will also have to have fire insurance.
Read more about motor insurance for businesses

Voluntary insurance

One of the most important insurance policies you should take out if you’re self-employed is professional indemnity insurance, although it is not statutory.

This is particularly relevant if you take on an advisory role for your customers. If you travel a lot in connection with your work, business travel insurance could also be a good idea. Furthermore, you could also consider taking out contents insurance to cover the furniture and equipment at your workplace.

It might also be a good idea to take out online banking insurance to cover your business bank account(s). Your bank doesn’t cover business accounts, only private accounts. Finally, you could consider taking out a health policy and business interruption insurance against loss of profits during sickness.

Health insurance will entitle you and your employees to quick advice and medical treatment, and this could mean you avoid long-term illness.

Business interruption insurance ensures financial help, if you or your employees fall ill or suffer an accident which requires a long period of sick leave.

As a member of IDA, you can buy all these policies through IDA Insurance. See all business insurance policies.

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