What about the mandatory AOV for freelancers?

It has been talked about in politics for years, but by the end of 2025, the plan for compulsory Disability Insurance for freelancers should be ready. The tax authorities and the UWV found a 2024 bill not easy to implement, which is why the cabinet is now working on a new plan. We would be happy to tell you more about disability insurance for freelancers and what the expected plans are.

Long-term disability

The time when the new proposal for the mandatory AOV will come into force is not yet certain, but the new proposal should be ready by the end of 2025. The law should help the self-employed financially in the event of long-term disability. This safety net is available for salaried employees, but not for entrepreneurs. For them, it is important that this is properly arranged.

Many freelancers do not take out an AOV

Currently, around 25% of freelancers have disability insurance. The high premium is often mentioned as the reason why self-employed people choose to take the risk and decide not to take out insurance.

Requirements of compulsory disability insurance

At the moment, of course, not all the conditions are known yet. However, there are already some data from the preliminary proposal that we can mention. According to the 2024 proposal, the premium should be a maximum of €195. The premium must be paid to the tax authorities and is tax deductible. The payment of the compulsory AOV will be a maximum of 100% of the statutory minimum wage. For many freelancers, this may mean that additional options are still needed to compensate for the loss of income.

Take care of the first year yourself

In the preliminary proposal, the UWV starts paying the disability benefit after one year of illness and this will continue until the state pension age at most. In this case, as an entrepreneur, you must therefore be able to bridge the first year yourself. If you also want to be assured of income that first year, you will therefore have to insure yourself additionally by that time.

Benefits of a mandatory AOV

• Financial security

The first advantage is, of course, the financial security that an AOV offers you if you are no longer able to work due to illness or an accident. You will receive a benefit that allows you to bear the fixed costs and make a living. Disability insurance prevents you from ending up on social assistance when things go wrong.

• Broad acceptance

Broad acceptance is an important issue when it comes to compulsory AOV. In fact, it's just like it now applies to salaried employees. Everyone is accepted without exclusions. If you now have physical or psychological complaints as a self-employed person, you are hardly or hardly eligible for an AOV. Depending on your activities, there are risks that are included in your premium. It is expected that this will still be the case with any additional AOV insurances that you take out, but that the basic premium will be the same for everyone.

• Healthier business climate

A mandatory AOV will ensure a fairer playing field between the self-employed and salaried employees, because freelancers will then enjoy similar protection as employees in this area. Raising awareness among freelancers about the risks they run is very important and often underexposed. Ultimately, the security that an AOV offers will help freelancers to do business in a healthier and more stable way.

More information about an AOV for freelancers

As an entrepreneur, do you currently have no disability insurance, but would you like to know more about the options? Contact one of the Frisia Insurance advisors. We are happy to see for you which AOV best suits your company and absorbs the risks properly. Make an appointment today.

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