Personal insurance for the self-employed and entrepreneurs

Being your own boss has many advantages, but it also means that an employer does not automatically protect you. It’s up to you to get the cover you need. There isn’t any compulsory insurance in this respect, but you might want to consider some options.           

Pension insurance

The average gross monthly pension for self-employed individuals is €1,188, based on the 2023 pension statistics. Therefore, if you aim for a comfortable retirement, it's wise to plan ahead or consider obtaining insurance.

Voluntary Supplementary Pension for the Self-Employed (PLCI/VAPZ)

This safe and fiscally beneficial savings scheme allows you to receive an additional amount alongside your statutory pension upon retirement. To accumulate this amount, you deposit an amount of your choice each year: a minimum of 100 euros, up to a maximum of 8.17% of your net income over the past three years.

PLCI primarily invests in branch 21, a savings product with returns guaranteed by the insurance company.

Who is it for? 
Self-employed professionals in their main or secondary occupations—provided that they pay the same social security contributions as a self-employed individual in their main profession and have been active for three full calendar years. Assisting spouses (maximum status) may also contribute to the PLCI/VAPZ.

Social PLCI/VAPZ

With this more extensive PLCI/VAPZ insurance cover, you also receive compensation in the event of incapacity for work or disability. The maximum amount that you can save is also higher (9.4% of your net income of 3 years ago) than with a standard PLCI/VAPZ insurance.

Pension agreement for the self-employed (PAS/POZ)

This supplementary insurance provides you with the opportunity to set aside even more money for your retirement, in addition to a PLCI/VAPZ. This enables you to achieve a pension level comparable to that of a wage earner. Be aware that the PAS/POZ is less fiscally attractive than the PLCI/VAPZ.

Who is it for? 
The new scheme is designed for sole traders and independent professionals. Self-employed individuals in a secondary occupation, assisting spouses, and independent helpers also qualify under certain conditions.

Individual Pension Commitment (EIP/IPT)

For self-employed individuals who operate as a company, this presents a beneficial method to build a pension beyond the limits of a PCLI/VAPZ. The premium is entirely tax-deductible, falling under corporate tax. The 80% rule governs the maximum premium. In other words, the combined statutory and supplementary pension cannot surpass 80% of the self-employed individual’s last annual net business income.

Unlike the PLCI, the EIP offers the possibility of investing in branch 23 (i.e. on the stock market). This offers more attractive returns but potentially higher risk.

Hospitalisation insurance

Hospitalisation insurance is not mandated by law, which raises the question of why you should consider obtaining it at all. Under your compulsory health insurance (with a health insurance fund known as mutualities (mutuelle/mutualiteit)), only a portion of your hospitalisation expenses is reimbursed. If you’re not covered by supplementary hospitalisation insurance, you will have to pay the remaining amount yourself, which can certainly accumulate. Certain expenses related to your hospitalisation are only partially – or not at all – covered by your health insurance, such as laboratory expenses, consultations, blood transfusions, and medication. All these costs can really add up, leading to high hospital bills. This is where hospitalisation insurance can prove beneficial. 

You can also obtain insurance for outpatient care, optometry, medical devices, as well as dental or clinical procedures that are not covered by the basic service. This insurance reimburses 80% of all your medical expenses (such as doctor visits, dentist appointments, physiotherapy, osteopathy, medications, the purchase of new glasses, orthopaedic appliances, prosthetics, etc.).

Guaranteed income

As a self-employed professional, you rely heavily on your own availability to keep your business afloat. However, what happens if you are unable to work due to an illness or an accident? Your income will quickly diminish. After a few weeks, you will receive a fixed daily sum from your health insurance fund, but that financial support will not be enough to maintain your standard of living.

What does the insurance involve? 
The optional guaranteed income insurance offers you an additional benefit to supplement the payment made by your health insurance fund. The own risk period and additional guarantees vary from one insurer to another. Always ensure you gather sufficient information on the terms and conditions of this insurance before you commit.

In a guaranteed income contract, there are four important points to check:

• The salary amount covered, which indicates that the guaranteed income insurance is an addition to the daily payment from the mutual insurance company, calculated over 26 days. 
• The number of waiting days (30, 60, or 90 days) refers to the waiting period prior to receiving compensation. 
• The type of cover is also crucial: it can be accident insurance or accident and illness insurance. 
• Additionally, is there indexation of the annuity? In the event of a claim, there may be an annual indexation of 2% per year.

Life insurance

One thing you would prefer not to contemplate is what will happen to your loved ones when you pass away. Life insurance provides that the beneficiary you select will receive a sum to address any financial concerns or payable inheritance taxes. You will determine that amount in consultation with the insurer. You can still modify the insured sum and the name of the beneficiary at a later date.

Liability cover for directors

As a director, manager, management member or board member of a company or non-profit organisation, you certainly bear some responsibility: you can be legally liable for professional mistakes or negligence that cause damage to companies, non-profit organisations and third parties. In that case, you are personally or jointly and severally liable – in the event of a mistake by a fellow director – and creditors may claim your private assets.

Here are a few examples: 

• Negligence: repeated absences from board meetings, forgetting to take out insurance, etc.
• Breach of a legal obligation: delay in filing your annual accounts
• Dispute with an employee over harassment or unfair dismissal

It’s an unpleasant thought, wouldn’t you agree? With optional civil liability insurance for directors, you can shield yourself from third-party financial claims should they ever seek to hold you liable. Moreover, your personal assets stay out of reach.

Conclusion

You have numerous options, perhaps too many. If you find it difficult to see the forest for the trees, seek advice from your insurance broker. This will help you avoid making impulsive decisions, which could lead to being under- or over-insured.

^{This content was enhanced in 2025 with further insights from insurance broker Yago.}