Dutch law imposes a 104-week salary continuation obligation on employers when employees fall ill. There is no short-term disability cutoff, no FMLA-style unpaid leave option, and no ability to terminate the employee during this period. Verzuimverzekering (sick leave insurance) is not legally mandatory but is economically essential -- a single long-term absence can cost EUR 80,000--160,000. Premiums run 1.5--5.5% of the gross wage bill.
US parent company insurance policies almost certainly do not cover Dutch operations. Territorial exclusions, non-admitted insurance rules, and Dutch regulatory requirements mean the Dutch BV needs its own local insurance stack. Directors & Officers insurance is critical for any US executive serving as bestuurder -- Dutch personal liability exposure for directors is far more severe than in the US, and a single missed annual accounts filing creates a statutory presumption of mismanagement.
A 30-person Dutch subsidiary should budget EUR 48,000--95,000/year for its full insurance stack, with verzuimverzekering comprising 55--70% of the total.
The Insurance Stack
| Insurance Type | Annual Cost | Priority |
|---|---|---|
| Verzuimverzekering (sick leave) | EUR 33,000--57,750 | Day 1 -- Essential |
| D&O (bestuurdersaansprakelijkheid) | EUR 3,000--7,000 | Day 1 -- Essential |
| General liability (AVB) | EUR 800--2,500 | Day 1 -- Essential |
| Professional liability (BAV) | EUR 3,000--8,000 | Day 1 if providing services |
| Legal expenses (rechtsbijstand) | EUR 3,000--6,000 | Recommended |
| Cyber | EUR 3,000--7,000 | Day 1 if handling personal data |
| Contents (inventaris) | EUR 500--1,500 | Day 1 |
| Business interruption | EUR 1,000--3,000 | Add when revenue is significant |
Why US Parent Policies Fail
US CGL policies typically cover claims "arising out of" US operations or suits brought in the US -- a claim brought in a Dutch court by a Dutch party is not covered. US-licensed insurers are not EEA-licensed. Insurance premium tax of 21% must be paid on Dutch-risk policies. The solution is a controlled master program with a local Dutch-issued policy providing admitted coverage and the master policy providing DIC/DIL gap-fill.
Verzuimverzekering: The Critical Policy
For a 30-person office-based subsidiary (average salary EUR 55,000, total wage bill EUR 1,650,000), expect annual premiums of EUR 33,000--57,750 (2.0--3.5% of payroll). Without this insurance, a single 104-week illness case can cost EUR 131,000--141,000 including salary continuation, employer social charges, reintegration costs, and case management.
Sources
- Article 7:629 BW -- Salary continuation during illness
- Business.gov.nl -- Business liability insurance
- Business.gov.nl -- Absenteeism insurance
Insurance premium estimates are indicative ranges based on market conditions as of early 2026.