Commercial Liability Insurance (AVB)

There is no legal requirement for a business to have general liability insurance. Businesses are free to choose whether to insure themselves against damage they cause to others. However, many clients and industry organizations do require general liability insurance as a condition for doing business with them.

With general liability insurance (AVB), the company itself is the policyholder and is therefore insured against damage to third parties or their property. In many cases, employees are also covered under the policy. This means that any damage they cause while on the job is covered by the AVB.

Not all employees are automatically covered. Certain professions, such as doctors or lawyers, often require separate professional liability insurance. Therefore, always check the coverage and terms of your general liability insurance policy to determine who is covered and, if necessary, purchase supplemental insurance.

Business liability insurance is for small and large business owners, self-employed professionals, and sole proprietors. After all, any business can face liability claims.

Business liability insurance does not cover professional liability. To be covered for professional liability, you must purchase a separate professional liability insurance policy.

In addition, items that you have “in your care” are not automatically covered under your policy. These are items belonging to someone else that you are working on or that you are temporarily in charge of, such as a kitchen or bathroom that you are installing. You can often add coverage for this type of damage, usually up to €5,000. Please contact customer service for more information.

Always check the policy terms and conditions to see if there are any other exclusions. This varies by insurer.

No, business liability insurance is not required. However, it can be a very useful addition to your business insurance coverage. After all, accidents happen, and it’s not pleasant to have to cover the financial consequences of a claim yourself.

Furthermore, suppliers or clients are increasingly unwilling to do business with anyone who is not insured.

Liability insurance is an important type of insurance for your business. While working, you or one of your employees could accidentally cause damage to other people’s property or injure others.

If someone is injured, the costs can quickly add up to tens of thousands of euros. Commercial liability insurance provides coverage in many situations and can be the solution.

Business liability insurance is often confused with professional liability insurance.Professional liability insurance covers financial losses suffered by your client as a result of a professional error for which you are liable, and is particularly relevant for business owners whose work involves providing advice, such as consultants or engineers.

Personal liability insurance covers damages that occur in private situations, while business liability insurance covers damages that occur while working. Therefore, business-related claims are not covered by personal liability insurance.

It is not permitted to use personal liability insurance for business purposes. If you are held liable as a business owner for damages that occur during work, you need a business liability insurance policy that specifically covers business-related risks.

Yes, in many cases, business liability insurance is deductible as a business expense. The premium is classified as a business expense and therefore reduces your profit. Be sure to check with your accountant to see if this applies to your business.

It’s a good idea to purchase supplemental insurance if you work in high-risk environments or engage in specific business activities that fall outside the standard coverage of your general liability insurance. Therefore, always review the terms and conditions and purchase supplemental insurance as needed.