Business interruption cover: income if you cannot work

As a freelancer, your biggest asset is your ability to work. But what if a fire destroys your equipment, a theft wipes out your supplies, or a flooded workspace forces you to shut down for weeks? Unlike disability insurance (AOV), which covers your income if you can't work due to illness or injury, business interruption insurance protects your turnover when you can't work because of damage to your business. This guide explains what it covers, how it differs from other insurances, and when it's worth the premium.

What is business interruption insurance?#

Business interruption insurance (bedrijfsschadeverzekering) covers your loss of income when your business must temporarily stop due to an insured event. These events typically include:

For example: Your studio floods. You're physically fine—you could work—but your workspace, equipment, and client files are gone. You can't invoice clients for three weeks while repairs happen. Business interruption insurance reimburses your lost turnover during those three weeks.

How it differs from AOV (disability insurance)#

This is the key distinction many freelancers miss:

• AOV (disability insurance) covers your income if you personally become ill or injured and cannot work
• Business interruption insurance covers your income if your business premises or equipment are damaged and you cannot operate

These serve different risks. You can have both—and many professionals do. AOV protects you from personal illness; business interruption protects you from property disasters.

Who needs business interruption cover?#

You're a candidate for business interruption insurance if:

• You work from a physical location (office, studio, workshop, salon) that you rent or own
• Your business depends on specific equipment (computer servers, medical devices, design tools, production machinery)
• You hold inventory (stock, supplies, or finished goods on the premises)
• You have high fixed costs (rent, staff salaries, loan repayments) that don't stop when you can't work
• A shutdown would quickly damage your reputation (e.g., a photography studio unable to deliver wedding photos on time)

If you work purely remotely (laptop only, no physical location, no stock), the risk is lower, though equipment damage could still cause a brief halt.

What does business interruption insurance cover?#

A typical policy reimburses:

• Lost profit and revenue during the interruption period
• Fixed costs (rent, utilities, insurance premiums) that continue even when you're shut down
• Payroll and contractor costs if you have staff or subcontractors
• Costs to temporarily relocate or work from elsewhere
• Professional fees (accountants, lawyers) to handle the disruption
• Costs to restore your data or rebuild your systems

The waiting period (often 3 to 30 days) determines when payouts start—a longer waiting period means a lower premium.

The coverage period (often 3 to 12 months) is how long the insurer will cover your loss. Most policies cover standard operating losses; some add extra coverage for supply-chain disruptions (if a key supplier is damaged, you still lose turnover).

How is it priced?#

Business interruption premiums depend on several factors:

• Your annual turnover: Higher turnover = higher potential claim = higher premium
• Type of business: A restaurant or salon has more risk than a freelance consultant
• Location risk: Areas prone to flooding or theft pay more
• The waiting period: A 3-day waiting period costs more than 30 days
• The coverage period: 12 months of cover costs significantly more than 3 months
• Your other insurance: If you bundle it with contents/property insurance, you may get a discount

As a rough guide, you might pay around 200–800 euros per year (hedge exact amounts—shop around). It's often cheaper if you combine it with equipment or contents insurance.

How the claims process works#

If an insured event happens:

1. Notify your insurer immediately — usually within 30 days
2. Document the damage — photos, repair quotes, list of lost equipment or stock
3. Prove the interruption — show that your business genuinely could not operate (repair timelines, business closure dates, etc.)
4. Calculate lost turnover — you'll need to show your normal monthly revenue; the insurer compares it to the months you were shut down
5. Provide supporting records — tax returns, invoices, bank statements to prove your regular income
6. Receive payment — typically 4–8 weeks after a complete claim is submitted and assessed

The insurer may require an expert to survey the damage. Keeping clear financial records (invoices, bank statements, profit calculations) makes the claim faster and easier.

Business interruption vs. related insurances#

To help you decide, here's how it compares to other coverage you might consider:

Many successful freelancers use all three: business interruption (property risk), AOV or broodfonds (personal health risk), and contents insurance (asset protection). You choose based on your risk profile.

Frequently asked questions#

Business interruption insurance fills a gap that many freelancers don't realize exists: it's not about you becoming unable to work, but your workspace or equipment preventing you from working. If your business depends on a physical location, equipment, or stock, it's worth a quote. Compare policies, check the waiting and coverage periods, and bundle if you can. For a full rundown of which insurances you should prioritize, read which insurance do you really need. And if you're thinking about disability cover, remember: business interruption and AOV are different beasts. Once you have the right insurance mix in place, ZZP Belasting helps you manage the rest: tracking deductible costs, keeping your records in order, and ensuring you claim every business expense you're entitled to.

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