Compare liability insurance for companies (AVB).
If you have a business, you may cause harm to your customers while at work. Just think of a painting company that drops a pot of paint over the carpet. With liability insurance for companies (AVB) you are insured for damage caused during work.
With liability insurance you are insured if you are legally liable for damage. For example, if you cycle into a parked car, your cat knocks over an expensive vase or if your children shoot a ball through the neighbor's window. But also if you, your child or pet injure someone. Not every damage is insured. Consider intentional damage or damage caused with a motor vehicle . Rented items are also not covered by your liability insurance . For example, if you rent a sander for that painting job in the house. Or if you rent a party tent for a garden party.
WHY DO YOU TAKE OUT LIABILITY INSURANCE FOR COMPANIES ?
Most Dutch people already have liability insurance. However, liability insurance for private individuals (AVP) does not cover damage that you cause as a company. Such damage can be expensive, so it is wise to have an AVB. Otherwise, you run the risk of not being able to pay such a high damage claim yourself. Especially as a small self-employed person, this can be a problem that you would rather not have to deal with.
