Are you ready for your first insurance claim?

Prepare for your first damage claim with three pillars: the right liability insurance, strong terms and conditions and contracts, and proper oversight of your people and work. A small mistake can have major consequences, and as an entrepreneur, you are also liable for errors made by your employees. Below, you can read how to protect both your business and personal assets against claims.

Limit your liability with the right insurance

Good insurance is the first step. Insurers distinguish, among other things:

• Business Liability Insurance (AVB): for damage you cause during work — think of a plumber making a faulty connection causing a house to flood.
• Professional liability insurance: for damage caused by a professional error, for example, an advisor giving incorrect advice.

In addition, there are specific insurance policies that cover your liability, such as CAR insurance (for construction projects) and directors' and officers' liability insurance. TODO_VERIFY: the coverage and insurance suitable for your situation varies by industry — consult an insurance advisor for advice.

Limit risks with good general terms and conditions and contracts

In addition to insurance, you limit the risk by making good agreements yourself. This starts with good general terms and conditions, in which you address your liability and the limitation thereof. After all, you can make agreements with your customers regarding your liability.

• Do you already have general terms and conditions? Have them checked to see if they adequately cover the liability risk.
• Don't you have them yet? Have them drawn up.

also include provisions regarding liability in other agreements . Furthermore, ensure that your contracts and quotations are crystal clear, for example with a clear job description.

Control is essential

You are liable not only for your own mistakes but also for those of your employees. Therefore, it is important to carefully select, train, instruct, and monitor them. Regularly check whether your instructions are being followed and intervene if necessary. Also check:

• the quality of your raw materials and semi-finished products;
• the work of other entrepreneurs you engage for a project.

Additional risks in construction projects

The risks vary by project; a construction project entails greater risks. Please take the following into account:

• ensure you have good CAR insurance;
• Only accept assignments that you can actually carry out;
• work with a good contract for services;
• If necessary, engage a risk engineer to investigate the risks on the construction site so that you can take precautionary measures;
• Always use the right people, tools, materials, and personal protective equipment.

Frequently Asked Questions

What is the difference between business liability and professional liability?

Business liability insurance covers damage you cause during work (such as property damage or personal injury). Professional liability insurance covers damage caused by a professional error, such as incorrect advice.

Can I limit my liability in my general terms and conditions?

Yes, within the limits of the law, you can make agreements regarding the limitation of your liability. Good, legally sound terms and conditions are essential for this.

Am I liable for mistakes made by my staff?

In principle, yes. That is why careful selection, instruction, and monitoring of your employees are important to prevent claims.

What do I need to arrange for a construction project?

This includes, among other things, CAR insurance, a sound contract for services, and, where necessary, a risk engineer. Only accept assignments that you can execute.

Well prepared for your first insurance claim?

A claim is always lurking. With the right insurance and legally strong terms and contracts, you significantly limit the risk. We review or draft your general terms and conditions and agreements so that your liability is properly covered.

View our expertise in contract law and the law of obligations, or schedule a no-obligation intake consultation.