How do you choose an unemployment insurance fund as self-employed?

When you're self-employed, it's natural to think that you don't need to be a member of an unemployment insurance fund. However, the fact that you are not an employee is not something that excludes you from suddenly finding yourself without income.

That's why it's a good idea for self-employed people to join an unemployment insurance fund. However, if you decide to do this, it's important to choose carefully. Not all unemployment insurance funds on the Danish market will be an ideal choice for the self-employed.

How to choose the right unemployment fund

There are several a boxes for the self-employed in the Danish market. However, not all of them are focused solely on the self-employed. If this is a requirement, you should be aware that you will have a very limited selection to choose from.

Even if an unemployment insurance fund doesn't only focus on the self-employed, that doesn't mean it can't be a good choice for those who run their own business. The most important thing is to make sure that the specific unemployment fund can offer you something that makes sense to pay for.

If you choose an unemployment insurance fund with extensive knowledge of entrepreneurship and running a business, it will be possible to use it as a sparring partner. You'll be able to get expert guidance and useful advice to help you take your business in the right direction.

This should be in focus

When choosing your unemployment insurance fund, there are several aspects to consider. That's why it's also necessary to take your time when choosing. Among other things, the following should be included in your considerations and assessments before you make your final decision:

• What is the price? - It's important to keep an eye on the price, as not all unemployment funds are equally cheap to join. It should be emphasised that this has nothing to do with your unemployment benefit rate, which is the same for all unemployment funds.
• Does the unemployment fund have special competences? - Before choosing an unemployment insurance fund, it's a good idea to find out if it has any special competences you can draw on. This means that as a self-employed person, you should choose an unemployment fund that can provide expert advice.
• Do they have offices in different parts of the country? - If you go bankrupt or have to close your business for any other reason, you will often have to physically visit your unemployment insurance fund. Therefore, make sure they have an office near your place of residence.
• Is it an unemployment insurance fund with a good reputation? - Unfortunately, not all unemployment funds have the same reputation. Before joining an unemployment insurance fund, it's wise to make sure that their current and former members have a high level of customer satisfaction.

Can self-employed people get unemployment benefits?

Many people think that if you're self-employed, you can't get unemployment benefits. However, this is not the case at all. You can, but you need to fulfil the following requirements:

• You must state that you are unemployed at the job centre via Jobnet.dk
• Within two weeks, you must have an updated CV
• You must both live and reside in Denmark
• You must be available for the labour market
• You must be able to start a new job with one day's notice
• You must actively look for a new job yourself

The above applies regardless of whether you are self-employed or an employee. As a self-employed person, you must also be able to fulfil the following:

• You must run a business as your main occupation
• You must have worked min. 30 hours per week
• You must have worked min. 52 weeks within the last three years
• Your business must be closed and you must be able to document this