Even though we have a real start-up boom in Germany at the moment, the Germans are more security-conscious: It's been 13 years ago that everybody declared me crazy when I started my own business.
And before 8 years ago, I still wrote articles about anonymous insolvency. even if failed founders now on Fuck-Up-Nights entertainingly tell of their failure, entrepreneurial failure in Germany is still a difficult topic.
Which insurances do founders really need?
This shows the importance of security in Germany. No wonder business insurances are booming for entrepreneurs. This puts many founders who have no investor in the background into a dilemma:
On the one hand, they want to and should protect themselves, on the other hand, they need every penny to build their business. The wrong or unnecessary insurance is quickly becoming a capital-Burner - and at the same time with the risk of being even underinsured in an emergency.
Insurance companies are supposed to protect against exactly these consequences: namely serious financial consequences, unavoidable events or illnesses. And they give the subjective feeling of being protected against almost all risks.
15 billions for superfluous insurance
But every jeck is different and every founder and every one Company Depending on the industry, number of employees and order volume, a different insurance is needed. Because not all insurance companies make sense for everyone:
Experts estimate that Germans pay 15 billion euros a year for superfluous insurance coverage. Especially start-ups tend to compensate for their occupational uncertainty in the initial phase of self-employment with an excess of financial security.
For example, operating costs, business interruption or bad debt insurance are only worthwhile for larger companies. It can make sense to hedge company investments. Expensive special insurance, such as against broken glass, storm or fire usually do not pay. Rather, one should complete a total insurance of the most likely risks.
Beware of underinsurance in case of damage
At least as bad is however a sub-insurance, because in the case of damages can come to you, which you are hardly able to control yourself. Debt to the point of insolvency can be the result, if no insurance is introduced.
Whether and which insurance is necessary for you, however, depends entirely on your situation and your risks - depending on age, marital status and occupation: younger self-employed with family need insurance other than older entrepreneurs with multiple employees. And some occupational groups have higher accident, illness or liability risks than others.
Overview in the insurance jungle
It is problematic to keep a clear view of the many insurance offerings with different clauses. While there are numerous websites with free information and price comparisons offer.
Many of these sites are operated by insurance brokers or insurance companies. These are hardly objective and will usually provide such insurance and positively in price comparisons, which will give them higher commissions themselves. A truly independent insurance consultancy, on the other hand, is very expensive.
Check the policies regularly
Finding the right insurance in the insurance jungle is not easy. Because every founder has other risks that he must individually insure. However, some insurance is required by law. And even those who have already taken out insurance policies should check their policies on a regular basis instead of simply leaving them behind:
Are risks double-hedged? Have any risks been hedged which are no longer existing? Superfluous insurance contracts Unsubscribe should be terminated immediately, because the money for it can be more meaningfully invested in the company.
10 Tips for Choosing the Right Insurance
- The statutory health insurance: Health insurance is mandatory. However, the self-employed have the choice between legal and private health insurance. For the statutory health insurance fund, the contribution rate is around 500 € per month. Founders can, however, press the sentence down to about 180 € if you are wealthy and have been shown to earn less than the contribution limit. And who is only self-employed (Attention: Not more than 18 hours a week!) And main-school children educates or makes an education or further education, comes with about 120 € of it.
- The private health insurance: You can also private health insurance - sometimes even cheaper than the statutory health insurance. As a rule, the statutory health insurance is, however, cheaper for women and families. Because even if the private health insurance companies offer just for younger and male members with low contribution rates: This can change later, if the tariff group is closed or the contributions are not stable. And only then who before the 55. If the year of life becomes an insured person, he may return to the statutory health insurance.
- The state pension insurance: The state pension insurance is only compulsory for some founders: self-employed persons in teaching, health care and nursing professions, licensed craftsmen and entrepreneurs who receive more than five-sixths of their income from just one customer must pay 19,9% of their income into the statutory pension insurance, provided that their profits exceed 4800 € per year and they do not employ any employees subject to social security contributions. All others can take out voluntary insurance and choose their contributions freely.
- Riester promotion and private pension: In the first five years after the foundation, there is the chance to acquire a claim to Riester funding through compulsory insurance in the state pension insurance. Private retirement provision, however, is usually more lucrative. Private annuity insurance promises security, but they only disclose meager returns and cost high fees. Experts therefore recommend investing in funds, preferably in fund-saving fund plans, but not without risk.
- Employment and disability insurance: Meaningful is the occupational disability insurance. Because the state disability pension, which is due when you can no longer work as a pensioner before the retirement age, this risk hardly covers. The critical point of private occupational disability insurance is the term abstract referral. If this is in the contract, the insurance company checks whether the entrepreneur could not engage in a related activity in the event of occupational disability, regardless of whether there are jobs at all. Luckily, this clause is rarely found in treaty texts.
- Alternatives to occupational disability insurance: Often the insurances also exclude pre-existing illnesses from the insurance. Anyone who does not get a good job disability has other possibilities: Dread Disease Insurances against individual serious illnesses, a basic health insurance or a private disability insurance.
- The accident insurance: In contrast to occupational disability insurance, private accident insurance only pays for accidents - worldwide and with low contributions - but statistically, diseases are much more common than accidents. The professional association, in which self-employed can also secure voluntarily (Caution: in some there is compulsory insurance!) Although pays for occupational diseases, but their catalog is very limited.
- The unemployment insurance: Even relatively new is the fact that self-employed persons can now insure themselves voluntarily relatively cheaply (currently about 21 €) against unemployment, if you were before the foundation also in the state unemployment insurance. Private unemployment insurance, on the other hand, is generally not worthwhile.
- Liability Insurance: Important is also a liability insurance: The operational liability covers damages, which happen to others in the course of the business - for example, if someone on the company premises violates. If a customer has financial losses, the liability to property liability is affected. It is even compulsory for certain professions, eg lawyers. In addition to damage to property and personal injury caused by faulty products, product liability also covers property damage. And sometimes professional and private liability insurance can be combined favorably.
- The legal expenses insurance: Reliable is a legal protection insurance. It does not accept claims for damages or preventative legal advice. For this, usually expensive and unnecessary services must be paid. A cheap alternative for self-employment can be legal advice and protection through a professional association.
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