A self-employed worker who stops working doesn't just lose their income: they continue to pay their social security contributions. It is this double burden that supplementary insurance is supposed to address, and it is precisely here that the mandatory system shows its limitations.
## What the mandatory scheme pays, and when
Depending on their status and profession, self-employed individuals are subject to a daily allowance scheme whose rules differ significantly from those of salaried employees. Three parameters govern everything, and these are the three that must be understood before considering the amount.
First, there's the waiting period: payments don't start on the first day of sick leave. Depending on the plan and the nature of the leave, several days may pass without any payment.
The calculation method then becomes clear: the compensation is based on a reference income, generally an average of declared income from recent years, and is capped. A self-employed individual whose business has been successful recently is compensated based on their past performance, not their present one.
Finally, the duration: compensation for sick leave is not intended to last indefinitely. Beyond that point, it falls under the category of disability, with different rules and different amounts.
Some self-employed professionals fall under independent pension schemes with different systems, sometimes offering significantly less protection in the initial months. A figure that applies to a tradesperson may not apply to a professional in a liberal profession.
## What the mandatory scheme does not cover
The company's fixed costs continue to accrue during the shutdown. These include rent for the premises, equipment leases, salaries, subscriptions, and social security contributions. The mandatory social security system compensates for a loss of personal income, not the cash flow of a business that has ceased operations.
This is covered by a separate guarantee, often called permanent overhead, which covers these expenses for a specified period. It is absent from many contracts taken out quickly at the time of business creation.
The other blind spot is the definition of disability. Two contracts may have similar rates but not cover the same things depending on whether they define it in terms of occupational disability—the inability to perform your job—or functional disability, assessed in absolute terms. For a tradesperson whose job requires precise use of their hands, the difference between the two definitions is considerable.
## The three questions to ask yourself
After how many days of absence does your contract start paying anything? This is the most concrete question, and the least often asked.
On what income is the compensation calculated, and does this income still correspond to your current activity? A contract taken out eight years ago compensates the business owner you were at the time.
Are your fixed costs covered, and for how long?
## A revision, not a subscription
Most of the situations I encounter are not due to a lack of coverage: the contract exists. It simply no longer corresponds to the business activity because the income has changed, employees have joined, or equipment has been financed since then.
Reviewing your insurance contract every two or three years costs an hour. Discovering its limitations when you stop working costs much more.
This text presents the general framework applicable to self-employed workers.
