Dutch freelancers urged to use advance payments and proper insurance

Freelancers in the Netherlands are advised to request advance payments when starting a project, especially when they incur material costs, reserve weeks of work, or face the risk of a client cancelling. The amount of the advance should reflect the freelancer’s expenses, the size of the assignment and the likelihood of unused booked time. Clear terms – amount, payment date, start date and cancellation policy – must be written into the contract and invoiced before the work begins, with appropriate VAT handling.

In parallel, self‑employed professionals are urged to secure suitable insurance coverage. Liability insurance protects freelancers from financial claims if they damage a client’s property or cause injury during a job. Because freelancers lack an employer’s umbrella policy, they must obtain a dedicated ZZP liability policy. Additional coverage for health interruptions and equipment loss is also recommended to avoid unexpected financial strain.