Over 80% of Dutch self-employed have no disability insurance, face financial risks

More than 80 percent of self-employed workers in the Netherlands do not have disability insurance, leaving nearly one million entrepreneurs without financial protection if they become seriously ill or injured, according to a new analysis by DisabilityInsurance.nl (Arbeidsongeschiktheidsverzekeringen.nl) based on data from Statistics Netherlands (CBS) and research institute TNO.

The number of self-employed workers (zzp’ers) has steadily increased over the past decade. Yet, the share of those with disability insurance has dropped sharply—from 23 percent in 2011 to just 15.7 percent in 2023. While 21 percent of zzp’ers had some form of income protection last year, including disability insurance, mutual support funds known as broodfondsen, or voluntary coverage via the Employee Insurance Agency (UWV), the vast majority remain uninsured.

Gabriël Baysoy, spokesperson for DisabilityInsurance.nl said the low insurance rate exposes many entrepreneurs to significant financial risk. “Without insurance or a sufficient financial buffer, a few months of illness or incapacity can cost thousands or even tens of thousands of euros in lost income,” Baysoy said in the press release. “For many self-employed workers with limited savings, this can mean the difference between continuing their business or closing it down.”

The analysis found that 46 percent of uninsured zzp’ers consider the premiums too expensive, while 32 percent say they cannot afford them. Baysoy described this as a predictable yet worrying trend. “Costs are indeed a barrier, especially for those with fluctuating incomes. But many also underestimate their financial risks. When asked how they would manage a six-month absence from work, many answer, ‘I don’t know.’”

Unlike employees, self-employed workers do not have a right to paid sick leave and must rely entirely on themselves to cover income loss. Despite this, most do not take out disability insurance, often due to unclear conditions or the belief that an illness or injury will not happen to them.

The Dutch government has been working on a plan to introduce mandatory disability insurance for self-employed workers since the 2019 Pension Agreement. However, the rollout has been delayed multiple times and is now expected to take effect no earlier than 2027. Until then, disability insurance remains voluntary, with most zzp’ers opting out.

Baysoy urged self-employed workers not to wait for the mandate. “The obligation is delayed, but that does not mean entrepreneurs should do nothing. Many find AOVs more affordable and accessible than they expect once they research their options.”

With the number of self-employed growing, Baysoy stressed the importance of awareness and informed decision-making. “It is vital that entrepreneurs understand their situation and the choices they have. Only then can they make decisions that protect their income and business.”