Company Phone Insurance for the Self-Employed

Freelancers and self-employed professionals who use their smartphone almost exclusively for work need commercial phone insurance. Personal tariffs regularly exclude commercial use in the small print. The insurance premium is deductible as a business expense. Anyone using their device for work more than 90 percent of the time can even claim the entire device for tax purposes.

Why Personal Tariffs Aren't Enough for a Company Phone

The Small Print Excludes Commercial Use

Personal phone insurance tariffs almost always contain an exclusion that becomes a problem for the self-employed. [1] Most phone insurance policies are aimed exclusively at private individuals and don't cover commercial use of a phone or smartphone. This isn't a minor issue: anyone working as a freelancer who handles client calls daily, sends out quotes, and manages project data on the device is clearly using their iPhone commercially. The consequences are serious. In the event of a claim, the personal tariff then doesn't apply — the insurer can refuse to pay out.

Many Self-Employed People Take Out the Wrong Tariff

The exclusion isn't on the product page but buried in the policy terms. [1] Many businesses mistakenly take out standard phone insurance, even though the terms exclude commercial use. For a freelancer whose iPhone is their central work tool, this means, in an emergency: total loss, no replacement, full costs borne alone. Especially with current flagship models, which quickly cost €1,200 or more, this is a considerable risk.

Commercial Use Genuinely Increases the Risk of a Claim

Smartphones used for work are simply in use more often and more intensively. [1] In everyday work life especially, smartphones are exposed to greater hazards and get damaged more easily. Anyone who is out on construction sites, at client appointments, or traveling every day carries their device into situations that considerably increase the risk of a claim compared with pure private use. A suitable tariff reflects this reality — personal tariffs structurally can't.

Hepster Phone Insurance: Two Tariff Variants in Detail

Tariff Without Theft Cover: Damage Cover for the Company Phone

The basic tariff from Hepster (insurer: andsafe AG) comprehensively covers damage to the company phone. Covered are damage from drops, breakage, sand, liquid, and weather, provided intended use or the display is impaired. Also included are damage from fire, explosion, power surge, short circuit, as well as damage from sabotage, vandalism, and operating errors. Wear of the original battery is also covered — though only after a minimum term of 12 months and up to a maximum device age of 5 years. Not included in this tariff: theft, robbery, or loss.

Tariff With Theft Cover: Full Protection Including Disappearance

The extended tariff additionally covers damage from theft, burglary-related theft, robbery, and looting. Unlawfully incurred call charges arising from the device's disappearance due to an insured event are also covered up to €100. Both tariffs pay out for up to 2 claims per year. For partial damage, repairs are reimbursed up to the current market value; for total loss or disappearance, the current market value is paid out up to the agreed sum insured. The sum insured is based on the device's original purchase price and cannot exceed it.

Which Devices Are Insurable?

New, refurbished, and used phones are insurable, including the original accessories included in delivery. Requirement: a screen check must be carried out within 14 days of the contract being taken out, and an original invoice from an authorized retailer must be available. The device must be fully functional when the policy is taken out and clearly identifiable by its IMEI number. Not insurable are devices with no known IMEI number, devices modified to customer specification, or devices not commercially available in Germany. Insurance cover applies worldwide; claims are handled in Germany.

Damage from gross negligence and loss through leaving the device behind or forgetting it are excluded under both tariffs. Source: Hepster insurance product information document (andsafe AG).

Know the Exclusions and Coverage Limits

What Isn't Covered Under Either Tariff

Exclusions determine whether a policy actually pays out when it matters. Under both Hepster tariffs, damage from gross negligence or intentional acts is fundamentally excluded. Also not covered: damage from disappearance due to leaving the device behind, forgetting it, or losing it. Anyone who leaves their iPhone at a café and can't find it afterward gets no payout. Pre-existing damage that already existed before the contract was taken out is also excluded.

The Screen Check as a Mandatory Condition

Without a screen check, there is no insurance cover. This requirement applies to both tariff variants: the screen check must be carried out within 14 days of booking. If it's carried out and failed, display damage is excluded. For freelancers who want to secure their device right away: complete the screen check first, then cover is active. In the event of a claim, a cost estimate from an electronics specialist retailer must also be approved by MOIN Servicegesellschaft mbH before repairs begin.

Uninsured Accessories and Special Cases

Accessories bought separately or afterward aren't covered. This applies to protective cases, external chargers, headphones, and similar items not included in the original delivery. Software of any kind is likewise excluded. For freelancers running expensive business apps or licenses on their device, this doesn't change device cover — but the software's value isn't factored into the payout. [3] Device insurance is often expensive and in many cases doesn't pay out — a close look at the policy terms before signing up is essential.

Contract Term, Termination, and Payment Terms

Monthly Subscription, Annual Subscription, or Fixed Term

Contract term and termination options differ depending on the model chosen. For the monthly subscription, a minimum term of 12 months applies; the cancellation must be received 3 working days before the insurance period ends, otherwise the contract automatically renews month to month. For the annual subscription, the contract automatically renews year to year — likewise with a notice period of 3 working days before the insurance period ends. For a fixed contract term: no ordinary right of termination; the contract ends automatically at the agreed time.

When Does Cover Begin?

Insurance cover begins at the time stated in the insurance certificate. This requires timely and full payment of the first premium. If the first premium isn't paid on time, cover only begins once payment is actually made. The first or one-off premium is due immediately after the contract is taken out, at the latest two weeks after receiving the insurance policy. Pay the premium, complete the screen check — then cover is in place.

Reporting a Claim and Obligations in the Event of a Claim

In the event of a claim, the damage must be reported without delay. Criminal offenses connected to a claim — such as theft or robbery — must be reported to the police within 24 hours. Claims are reported either via the web portal at hepster.com/de-de/schaden or by email to de@support.hepster.com to MOIN Servicegesellschaft mbH. Anyone who breaches these obligations risks a reduced payout or losing their claim entirely. In short: document the damage, involve the police (in case of theft), obtain a cost estimate.

Deducting Smartphone Insurance as a Business Expense

Device and Premium as a Business Expense

Business expenses for the company phone can be claimed on two levels: purchasing the device and ongoing costs. [5] Self-employed people and freelancers can claim their smartphone as a business expense. This also applies to the insurance premium: anyone insuring a commercially used smartphone can claim the premium as a business expense in their income statement (Einnahmen-Überschuss-Rechnung, EÜR). The requirement is that the device is actually used for business, which is easy to prove for a freelancer who uses it almost exclusively for work calls.

The 90 Percent Rule and the Low-Value Asset Threshold

Anyone using the device for work more than 90 percent of the time may claim the full expenses — purchase, ongoing costs, and insurance premium. [5] With more than 90 percent business use, the full expenses may be claimed. If the device's purchase price is under €800 net, it counts as a low-value asset (geringwertiges Wirtschaftsgut, GWG) and can be fully written off immediately in the year of purchase. If the device costs more — such as a current iPhone Pro Max — it must be depreciated on a straight-line basis over its standard useful life of five years. Self-employed individuals entitled to deduct input tax can additionally claim the VAT included as input tax.

Flat-Rate Rule Without Individual Proof

Anyone who doesn't want to keep detailed proof of use can use the flat-rate rule. [5] Without detailed proof, self-employed people can deduct a flat 20 percent of ongoing phone and internet costs — up to a maximum of €20 per month. For freelancers with high business use, on the other hand, a usage log or itemized call records analysis is worthwhile to document a higher share. For binding advice, consult a tax advisor. The rules presented here reflect the 2025/2026 status and are subject to change.

Not tax advice. For binding information, please consult a tax advisor. Sources: qonto_handy_steuer, easy_firmenkunden_geraeteversicherung.

When Is Commercial Phone Insurance Really Worth It?

Cost-Benefit Calculation for Freelancers

The cost and benefit of phone insurance depend heavily on the device's value and how intensively it's used. [3] Device insurance for smartphones costs between 10 and 30 percent of the sale price per year. For an iPhone Pro Max with a purchase price of €1,300, that means an annual premium of roughly €130 to €390. [4] Price differences between offers are enormous, and nasty surprises lurk in the small print. For a freelancer who uses their device intensively every day and brings it to client meetings, the risk of a claim is real — a single cracked display or theft can quickly exceed the annual premium.

Who Especially Benefits from Taking Out Cover

Commercial smartphone insurance pays off above all when the device is the primary work tool and a breakdown directly means lost revenue. [2] Freelancers, doctors' practices, law firms, and trade businesses can insure company devices worldwide. Anyone who travels regularly, attends trade fairs, or works off-site carries their device into high-risk situations. For this group, the theft-cover tariff is the more sensible choice. Anyone working mainly from a home office may get by with the cheaper damage-only tariff.

When Insurance Can Be Skipped

Not every freelancer necessarily needs separate phone insurance. [3] Device insurance is generally only worth it if the loss would be a genuine financial disaster. Anyone using an older device with low current value, or who has enough financial buffer to fund a replacement device themselves at short notice, can do without the cover. What matters: device value, intensity of use, degree of mobility, financial buffer capacity. nextsure offers a curated tariff comparison for this decision within its specialty insurance range.

Additional Cover: What Freelancers Should Also Check

Cyber Insurance for Businesses

Cyber risks are a distinct topic for freelancers with a commercially used smartphone. Anyone managing client data, login credentials, and business communication on the device faces, in the event of loss or a hack, not just device damage but potentially also liability risks toward clients. Cyber insurance for businesses kicks in exactly where phone insurance stops: with data loss, identity theft, and liability claims from data breaches. The two products work together.

Business Interruption and Device Downtime

Anyone who, as a freelancer, is reachable only via their smartphone risks a business interruption in the event of a total loss. Business interruption insurance for freelancers covers the loss of income that occurs when the central work tool fails and orders can't be handled. That's a different risk from pure device damage — and one phone insurance doesn't cover. In short: device insurance replaces the device; business interruption insurance replaces the lost income.

Laptop Insurance and Overall Equipment Protection

Freelancers who also use a laptop, tablet, or camera for work, alongside their smartphone, should coordinate their overall protection. Commercial device insurance for the self-employed covers notebooks and other end devices. Smartphone insurance against theft abroad provides further detail specifically on theft protection while traveling. Anyone wanting to insure their iPhone worldwide against theft will also find concrete tariff information there. nextsure bundles these niche products into a curated portfolio: no scattergun approach, a clear focus on equipment protection.