Hi,

My question is which insurance is necessary for a sole proprietorship business that provides business clients to food suppliers in NL.

• Employer Liability? What Amount?

• Product liability? What amount?

• Public liability? What Amount?

I do not directly produce food, but I contract suppliers to fulfil food orders.

Regards,

Harjinder.

Hi Harjinder,

Since you're operating as a sole proprietorship that connects business clients with food suppliers, it's important to have insurance that covers the risks related to your role. Below is a brief overview of commonly relevant insurance types. Note that the exact coverage you need depends on the size and nature of your business, these are average guidelines.

• Professional liability insurance is recommended because clients rely on your advice and mediation. If something goes wrong, you could be held liable.Many small businesses choose coverage between €250,000 and €1,000,000.

• Public liability insurance covers damage or injury you or your business cause to third parties, for example, during client visits. Coverage of around €2,500,000 per incident is common.

• Product liability insurance is usually only needed if you sell or produce food yourself. If you’re legally seen as the supplier, though, you might still carry responsibility, check your contracts carefully. Employer’s liability insurance is only required if you employ staff.

• Legal expenses insurance can be useful for handling disputes with clients or suppliers.

It’s probably a good idea to speak with an insurance advisor, who understands B2B services in the Dutch food sector, so they can help assess your specific risks.