We have previously shared information about the types of insurance that can be taken out as an entrepreneur.
We Hungarians tend not to take out insurance as readily as the Dutch do; however, experience shows that these insurances can be highly valuable in practice.
For example, during the winter months, when snowy conditions increase the risk of accidents, situations arise more frequently where an employee may be unable to work for two to three months due to an injury such as a fracture. In such cases, employers are legally required to continue paying sick leave, and this is where disability insurance can provide significant financial relief. Similarly, if an unexpected legal dispute arises with a main contractor or an employee, having legal expenses insurance can be extremely beneficial.
With the help of online resources, we have once again structured this information clearly to give you an overview of the types of insurance worth considering as an entrepreneur.
1. Insurance for the Entrepreneur
Health and Income
Disability Insurance (AOV)
Covers loss of income if you are unable to work due to illness or an accident. For self-employed entrepreneurs this insurance is generally not mandatory, but it is often required by financing institutions.
Health Insurance (basic + supplementary) – private insurance
Basic health insurance is mandatory for everyone; supplementary insurance may cover healthcare costs related to business activities.
Personal Risks
Life Insurance / Term Life Insurance (ORV)
Provides financial protection for the family or to cover business obligations (e.g. loans) in the event of death.
Accident Insurance
Provides a payout in the event of permanent disability or death caused by an accident.
2. Insurance for the Business and Its Activities
Frequently Mandatory Insurances
Business Liability Insurance (AVB)
Covers damage caused to third parties during business activities; often a contractual requirement.
Motor Vehicle Insurance (WA or higher coverage)
Mandatory for vehicles used for business purposes.
Recommended but Not Always Mandatory
General Liability Insurance (AVB)
Covers personal injury or material damage caused to third parties.
Professional Indemnity Insurance
Covers financial losses resulting from professional errors in advisory or service-based activities.
Product Liability Insurance
Provides coverage for damage caused by products.
Legal Expenses Insurance (business)
Provides legal assistance in disputes with clients, suppliers, employees, or authorities.
Cyber Insurance
Covers risks related to data breaches, cyberattacks, and IT system failures.
3. Insurance for Business Assets
Property and Equipment
Inventory and Equipment Insurance
Covers inventory and business equipment in the event of fire, theft, water damage, etc.
Property Insurance (Building Insurance)
Insurance for business-owned or rented premises (often required by the landlord).
Transport Insurance
Covers damage to goods during transportation.
4. Insurance for Employees
Group Health Insurance
Group Disability Insurance
Pension Insurance / Pension Scheme
Mandatory in certain sectors; in others, it serves as a competitive employee benefit.
Unemployment Insurance (WW)
Often a mandatory contribution; provides benefits in the event of dismissal.
5. Other and Optional Insurances
Directors and Officers Liability Insurance (D&O)
Covers the personal liability of directors and officers.
Business Interruption Insurance (loss of income)
Provides compensation for loss of revenue due to extraordinary events.
Credit Insurance / Non-payment Insurance
Covers the risk of non-paying clients.
Event Insurance
Environmental and Environmental Liability Insurance