Healthcare

AOV disability insurance for the self-employed in the Netherlands

Q: What is a broodfonds and is it a substitute for AOV?

A broodfonds is a small mutual group whose members make monthly contributions and support each other with gifted payments during illness. It is a genuine alternative for shorter absences and is considerably cheaper, but it is not insurance and typically covers a limited period — usually up to two years — so it does not replace an AOV for long-term or permanent incapacity.

5 min read · Last updated July 2026

By the Expat in Holland editorial team · Reviewed June 2026 against official sources

Self-employment in the Netherlands is straightforward to set up, but it comes with one gap that catches many expat freelancers off guard: there is no automatic income protection if you fall ill or become unable to work. Employees are covered by law. The self-employed, or zzp'ers, are not, unless they arrange it themselves. Understanding the AOV (arbeidsongeschiktheidsverzekering, or occupational disability insurance) is one of the more important pieces of financial planning for anyone running their own business here.

No employer, no automatic safety net

If you work under a Dutch employment contract and fall sick, your employer is obliged to continue paying at least 70% of your salary for up to two years (loondoorbetaling bij ziekte). After that, the WIA (Wet werk en inkomen naar arbeidsvermogen) can provide a longer-term disability benefit. None of this applies if you are registered as self-employed with the Kamer van Koophandel. There is no employer to fall back on, and the state disability scheme does not extend to zzp'ers. In practice, this means an illness or injury that stops you working can end your income overnight, with only the Bijstand (social assistance) safety net as a last resort, and that comes with strict asset and partner-income tests that exclude many people.

What an AOV policy actually covers

A private AOV is an insurance contract you take out with a Dutch insurer, typically covering a percentage of your declared income if you become unable to work due to illness or disability. You choose an eigen risicotermijn, or waiting period, before payments begin, usually somewhere between one month and a year, with a longer waiting period lowering your premium. You also choose the insured benefit amount, the percentage of your income the policy pays out, and the end age of the cover. Insurers will ask detailed health questions before accepting you, and pre-existing conditions can lead to exclusions, a loading on the premium, or in some cases a refusal to insure you at all, which is worth bearing in mind if you plan to switch policies later.

What it costs, and why premiums vary so much

There is no single price for an AOV. Premiums are calculated individually based on your age, occupation, health history, the waiting period you select, and how much income you want insured. A physically demanding trade will generally cost more to insure than desk-based freelance work. As a rough benchmark, the government's own proposed mandatory scheme, discussed below, priced its basic premium at around 6.5% of income, capped at approximately €195 a month in 2026 — useful context, though private market premiums for a comparable level of cover can sit above or below that figure depending on your profile. The only reliable way to know your own cost is to request quotes from two or three insurers or an independent adviser (assurantietussenpersoon).

Broodfonds and other alternatives

Not every self-employed person in the Netherlands buys formal insurance. A well-established alternative is the broodfonds, a mutual support arrangement in which a group of self-employed people, often numbering several dozen, each pay into a personal savings pot and agree to gift money to any member who falls ill, up to an agreed monthly amount for a set number of years. It is not insurance in the legal sense — there is no underwriting and no guaranteed payout — but it is popular among freelancers who find formal AOV premiums prohibitive, particularly those in creative or lower-income professions. Others simply build a large cash buffer instead, though this only offers meaningful protection against short absences rather than a long-term disability.

The mandatory AOV that keeps being postponed

For several years, the Dutch government has been developing legislation, the Wet basisverzekering arbeidsongeschiktheid zelfstandigen (Wet Baz), to make a basic disability insurance compulsory for anyone registered as self-employed for income tax purposes. Under the current proposal, the mandatory scheme would pay out up to 70% of a claimant's income, capped at 100% of the statutory minimum wage. The obligation was originally pencilled in for 2027 but has since been pushed back, with 2030 now the earliest expected start date, and the exact timing remains unconfirmed. If you take out a private AOV before the relevant reference date once it is set, you may qualify for more flexible transitional terms under the eventual law, so it is worth keeping an eye on developments even if you already have private cover.

Deciding what is right for you

There is no universally correct answer here. A freelancer with dependants, a mortgage, and no savings buffer has a very different risk profile from someone early in their career with modest fixed costs. Get quotes from a few insurers, ask an independent adviser to compare options rather than relying on a single insurer's recommendation, and weigh the premium against what a year or more without income would actually mean for your household. Whatever you decide, deciding deliberately, rather than defaulting to no cover because the paperwork is unfamiliar, is the important part.

Frequently asked questions

Is AOV insurance mandatory for freelancers in the Netherlands?

Not currently. A mandatory scheme for self-employed workers has been proposed and repeatedly postponed, so as things stand cover is entirely voluntary. If you are self-employed and have no policy, you have no automatic income protection if you become unable to work.

What does an AOV policy typically cost?

There is no single price — premiums are individually calculated from your age, occupation, health history, chosen waiting period, and how much income you insure. Physically demanding trades cost more to insure than desk-based work. For rough context, the proposed mandatory scheme priced its basic premium at around 6.5% of income, capped at roughly €195 a month in 2026, though private quotes can sit above or below that. Request quotes from two or three insurers or an independent adviser.

What is a broodfonds and is it a substitute for AOV?

A broodfonds is a small mutual group whose members make monthly contributions and support each other with gifted payments during illness. It is a genuine alternative for shorter absences and is considerably cheaper, but it is not insurance and typically covers a limited period — usually up to two years — so it does not replace an AOV for long-term or permanent incapacity.

Sources & official references

This guide is based on the official Dutch government and regulator pages below. We link them so you can verify every figure at source — rules and amounts change, and the source always wins.

Was this guide helpful? We try to keep all information up to date, but rules change. Always verify critical financial, tax, or legal information directly with the relevant authority before making decisions. See our editorial standards for how we research and review these guides.

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