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SMEs and the self-employed: the key types of insurance
2024 statistics show that Luxembourg has around 29,000 self-employed workers. Protecting your business is crucial in this dynamic landscape. Discover the key insurance types to consider as an SME or self-employed worker.
Compulsory insurance
To comply with legal requirements, certain types of company insurance are mandatory in Luxembourg. You must:
- Make contributions to the Social Security Centre (CCSS). To do this, you have to inform the CCSS of your activity within eight days of starting it to benefit from “health”, “accidents at work”, “retirement pension” and “dependency” cover. You can also join the Employers’ Mutual Fund to protect yourself against income loss if you are sick. Confirmation will be automatically sent to you after your declaration.
- Insuring any vehicles on behalf of your company. Only the “civil liability” option of the contract is a legal requirement. This is to cover any damage in the event of an accident with a third party caused by the driver of the vehicle. This minimum protection does not cover damage to your vehicle which is why we advise you to take out comprehensive insurance.
Good to know: additional compulsory insurance for regulated professions
Some trades must also take out “professional civil liability” insurance. These include: law companies, architects, hotels, insurance brokers and travel agencies.
Recommended insurance
To ensure your company is securely protected, we recommend you choose some key additional services. The right insurance protects SME managers from significant financial losses.
Professional liability insurance
“Professional liability” insurance, also known as “professional civil liability”, covers you in numerous situations such as :
- An incident caused by one of your employees.
- Damage caused to a client’s item while you are repairing it.
- Bad advice that has harmed your client.
Its purpose? To protect you in the event of damage caused to others while performing your activity. It covers legal costs such as possible lawyer’s fees in the event of a dispute with your client. Although optional (except for the professions mentioned above), we recommend that you protect yourself against these risks with this key insurance.
“Business” liability insurance
“Business” liability insurance covers you in the event of a problem with someone you don´t have a contractual relationship with. These are incidents involving third parties. For example, a customer is injured after slipping on a shop’s wet floor, or a passer-by is accidentally hit by a tool falling from a construction site. Even if it is not a legal obligation in Luxembourg, taking out this insurance is strongly advised for companys undertaking activities that involve the public. This cover protects you from complaints from third parties you don´t have a contract with.
Business interruption
Business interruption insurance is like a financial shield in the event of a major setback. It compensates you for loss of income and additional expenses when a disaster occurs, therefore allowing you to stay on course during the recovery period. Imagine a fire ravaging your production site: without this insurance, fixed costs such as salaries will continue to weigh you down, potentially putting you at risk. This insurance may not be compulsory, but it can quickly become essential to avoid bankruptcy if prolonged business interruption occurs.
Additional insurance
In addition to compulsory and recommended insurance, Foyer offers you extra guarantees designed to meet the unique needs of your profession.
Service providers
Foyer has created specific insurance for professionals offering consulting, IT, advertising, training or home care services:
- Protection of business equipment, covering damage such as breakage, deterioration or destruction, both on the premises and during travel. Discover our “machine breakdown” guarantee.
- Financial peace of mind guarantee that offers compensation in the event of interruption or temporary reduction in activity following a disaster.
Liberal professions
For liberal professionals, whether you work in architecture, engineering or have an estate agency, our insurance is tailor-made to ensure your peace of mind. With Foyer, you can count on :
- Protection for your main employees with, for example, the “key personnel” guarantee.
- Optimal coverage for your computer equipment (“office equipment breakage”).
- Assurance your files will be kept safe in all circumstances.
Retailers
Do you run a retail business? Whether it’s clothes, books or hairdressing, we understand your daily issues. We have turnkey solutions to protect you in all circumstances, giving you the added bonus of financial security.
Health professionals and paramedics
At Foyer, we understand the needs of health professionals: physiotherapists, doctors, psychologists, dentists, nurses, vets, etc. Our solutions protect:
- Your company.
- Your responsibility.
- Your equipment thanks to our “machine breakdown” guarantee.
- The impromptu shutdown of your activity following a disaster, offering a safety net.
Choosing the right cover is essential to keep your business afloat. By combining compulsory and recommended insurance and some additional options you have the key to protect your business. At Foyer, we know how vital good cover is for the self-employed. With our range of adapted solutions, you can count on our expertise to make your life easier. Trust our team to ensure the sustainability of your company.
To decide which insurance you need according to your profession, consult our guide for the self-employed and SMEs.
Three points to remember:
1. Certain insurance is compulsory in Luxembourg to comply with the legal provisions.
2. The main recommended insurance includes professional liability insurance, “business liability insurance” and “business interruption” insurance.
3. Choosing additional insurance with Foyer is fundamental to ensure the continuity of your activity.
