Insurance Options for Self-Employed Individuals: Mandatory and Recommended Policies

When you work as a self-employed person, there are insurance policies that are mandatory to take out, and others that are optional but strongly recommended. Among the compulsory private insurances, we find work accident insurance (for the manager or his employees), professional liability insurance (in the event of a customer complaint in the event of a defect, for example) and car insurance.

The compulsory quarterly social contribution allows you to finance your pension, maternity leave, replacement income, etc.

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Optional but recommended insurance

However, there are optional insurances to reinforce the points above. For example, the self-employed person can take out professional damage insurance to cover them in the event of damage to their work tools following a fire or natural disaster.

“Although social security contributions provide some coverage, it is a good idea to take out additional private hospitalization insurance. Many self-employed people go through DKV Insurance for this.shares Christophe Wambersie, general secretary of the Neutral Union for Independents (SNI). It is also recommended to take out guaranteed income insurance, to supplement the allocated amount of replacement income funded by social security contributions. If the self-employed person stops working for seven days due to illness for example, from the eighth day he will be compensated from the first day.”

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The fiscally attractive PLC

Finally, on the retirement side, it is possible to put some butter in the spinach with specific insurance for the self-employed: the “free complementary pension” or PLC. It makes it possible to supplement the amount linked to quarterly social security contributions. “The PLC is fiscally interesting because it is taxed at 3.5%termine Christophe Wambersie. In 2023, it is possible to contribute 8% of your professional income each year, with a maximum ceiling of 3,900 euros. You can receive this sum in one go in the form of capital or in the form of an annuity.”