The mandatory disability insurance (AOV) for entrepreneurs: everything you need to know
The Dutch government is working on new legislation that will require self-employed entrepreneurs to take out disability insurance: the “Wet BAZ” (Basic Disability Insurance for Self-Employed Persons).
The goal: more income security for entrepreneurs and fewer financial problems in case of long-term illness or inability to work.
But what does this actually mean for you as an entrepreneur? When will it start? And what can you already do now? We’ll walk you through it step by step.
- What is an AOV?
- Who is an AOV suitable for?
- What is the mandatory AOV (Wet BAZ)?
- Who will the mandatory AOV apply to?
- What if I’m not (yet) an “IB-ondernemer,” but I become one later?
- When will the mandatory AOV start?
- Transitional rules vs. opt-out
- What can you already do right now as an entrepreneur?
- Why act now?
- Extra benefit
What is an AOV?
An AOV (arbeidsongeschiktheidsverzekering; disability insurance) is an insurance policy that protects your income if you’re unable to work due to illness or an accident.
Without an AOV, you basically have no safety net as an entrepreneur. Employees in the Netherlands have legal protections such as continued salary payment and disability schemes (like the WIA). As a self-employed person, you don’t, you have to arrange this yourself. With an AOV, you receive a monthly payout if you become (partially or fully) unfit to work. That payout helps you keep paying fixed costs and personal expenses.
The premium depends on factors like your age, profession, health, chosen insured amount, and the waiting period (how long you have to be out of work before the insurance starts paying).
Who is an AOV suitable for?
In principle, an AOV is suitable for anyone who depends on their own income as an entrepreneur, such as:
- Freelancers / self-employed professionals
- Owners of a sole proprietorship
- Partners in a general partnership (vof)
- Directors-major shareholders (DGAs) who don’t receive a salary
For new entrepreneurs, an AOV can feel like “a big expense,” but in practice it’s often a smart way to protect your income. On top of that: in many cases, AOV premiums are tax-deductible.
What is the mandatory AOV (Wet BAZ)?
The Wet BAZ will require every self-employed person to be insured against long-term disability.
The scheme will be carried out by the Dutch social security agency (UWV) and provides a basic level of coverage:
- Premium: approximately 5.4% of your business profit, capped at around €170 per month
- Waiting period: 2 years (you only receive a payout after 104 weeks)
- Benefit: 70% of your income, up to a maximum of the statutory minimum wage
- Duration: up to state pension age (AOW age)
This is meant as a basic social safety net. It is not a replacement for a comprehensive private AOV. If you want broader coverage (for example: higher insured income, earlier payout than 2 years, coverage based on your own profession), you can still take out additional private insurance on top of the mandatory scheme.
Who will the mandatory AOV apply to?
The mandatory AOV will apply to everyone who earns business income that is taxed as profit from self-employment (in Dutch tax terms: “IB-ondernemers,” income tax entrepreneurs).
That generally includes:
- Freelancers / self-employed professionals with a sole proprietorship
- Partners in a vof (general partnership)
- Independent professionals such as physiotherapists, designers, consultants, etc.
Not everyone is included.
For example:
- Are you a DGA (director-major shareholder) of a BV and you receive salary through payroll? Then you generally fall outside the mandatory scheme, because you are already treated (for social security purposes) like an employee.
- Do you work through a platform or payroll construction? Then it depends on your legal/tax status and whether the tax office sees you as an “IB-ondernemer.”
What if I’m not (yet) an “IB-ondernemer,” but I become one later?
Let’s say right now you’re an employee, or you only have a very small side activity. Later, you decide to start working full-time as an independent entrepreneur.
In that case, from the moment you start earning actual profit from self-employment (and once the law is in force), you will fall under the mandatory AOV going forward.
There is no retroactive effect: you won’t be forced to pay for periods before you actually became a qualifying entrepreneur.
However, there’s something important here:
If you already have a private AOV before the cut-off date (expected: 1 January 2026) and that policy meets the legal requirements, you may fall under transitional rules. In that case, you may not have to participate in the public scheme later.
When will the mandatory AOV start?
The Wet BAZ is not final yet, but the current planning looks like this:
- 2025: draft law submitted to the Council of State for advice
- 2026: debate and approval process in Parliament (‘Eerste Kamer’ and ‘Tweede Kamer’)
- Cut-off date (“peildatum”): expected 1 January 2026
- Entry into force: expected 1 January 2030
That cut-off date matters. Policies that are in place before that date and meet the requirements can fall under transitional protection.
Transitional rules vs. opt-out
The move from the current voluntary system to a mandatory system won’t happen overnight.
There will be:
- Transitional rules (for people who are already insured in time), and
- An opt-out possibility (for people who arrange a qualifying private policy later).
Transitional rules (before the cut-off date)
If you already have a private AOV before the expected cut-off date of 1 January 2026, and that policy meets the legal requirements:
→ You fall under the transitional rules.
This means you can be exempt from the public UWV scheme, as long as your own AOV continues to meet the minimum standards.
Expected requirements for the transitional rules include:
- The policy was taken out before the cut-off date
- The coverage runs at least until age 55 or longer
- The waiting period is no longer than 2 years
- The benefit is periodic and based on disability (not a one-off lump sum)
- It’s real ongoing coverage, not a temporary stopgap
If you fall under these transitional rules, you don’t automatically get pushed into the public insurance later, and you keep the flexibility of your own policy.
Opt-out (after the cut-off date)
After the cut-off date, entrepreneurs can in principle still choose a private AOV instead of the public one — but the bar gets higher.
To use the opt-out, your private AOV must:
- Cover you up to state pension age (AOW age),
- Be at least equivalent to the public scheme in terms of coverage and premium,
- Not include medical exclusions,
- Insure at least income at the level of the statutory minimum wage.
In other words, after 2026, you’re only allowed to “opt out” if your private insurance is just as solid as (or better than) the public one.
In short:
- Taking out an AOV before 2026 → transitional regime, more flexible
- Taking one out after 2026 → stricter opt-out requirements
What can you already do right now as an entrepreneur?
Even though the mandatory AOV is only expected to start on 1 January 2030, now is the time to act.
1. AOV advice
Every entrepreneur’s situation is different.
Our partner A&H Finance can quickly and clearly advise you on:
- Which AOV fits your situation best, and
- How to make sure you meet the upcoming legal requirements.
This gives you clarity and helps you make the right decision in time.
The cost for this personal AOV advice is normally €750, but as an existing client of De BelastingBespaarders you will pay a reduced fee.
If you’d like personal advice, we’ll introduce you directly to A&H Finance so you can get help quickly.
2. Take out an AOV yourself
Prefer to arrange an AOV yourself? You can do that via A&H Finance’s online tool. You answer a few short questions and you’ll immediately see which AOV and which premium best match your situation.
The one-off arrangement fee for this route is €150.
Why act now?
The mandatory AOV might feel far away, but the cut-off date of 1 January 2026 is much closer.
By acting now:
- you benefit from more flexible conditions,
- you keep the freedom to choose your own cover instead of being pushed into the public scheme, and
- in some cases, you can even take advantage of promotions (like the current a.s.r. offer with 6 free months of premium if you take out a Basic AOV before 1 December 2025).
Extra benefit
Insurer a.s.r. currently has a promotion:
If you take out a Basic AOV before 1 December 2025, you get the first 6 months of premium for free.
That makes it even more attractive to set up proper cover now instead of waiting.
TaxSavers is here to help
The mandatory AOV is definitely coming. The Wet BAZ is designed as a social safety net, but it only provides a basic level of protection.
Entrepreneurs who take their income security seriously would be wise to act now.
Don’t have an AOV yet? Or are you unsure whether your current insurance will meet the future requirements?
The TaxSavers is here to help. Together with our insurance partner, A&H Finance, we’ll review your situation, check whether you qualify for the transitional rules, and help you take out the right AOV.
Fill in the contact form or call us at 020-2170120 for an advisory meeting, or simply and quickly take out your own AOV online.
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