In business in Germany, a single mistake can ruin a company. Commercial insurance lets you transfer the main financial and legal risks to insurers.

Business liability insurance (Betriebshaftpflichtversicherung)

The basic cover virtually every business needs: it covers personal injury (Personenschäden), property damage (Sachschäden) and resulting financial losses caused to clients or third parties by the company, its employees or on its premises.

Professional indemnity (Vermögensschadenhaftpflicht)

For consultants, IT developers, accountants and lawyers, cover for clients' pure financial losses (Vermögensschäden) is essential. If a bug brings down a client's online shop or an incorrect tax entry leads to a fine, this insurance covers the damage.

Contents insurance for business premises (Inhaltsversicherung)

The business equivalent of home contents insurance: it protects office technology, equipment, stock and furniture against fire, water damage, burglary and vandalism. If a claim arises, it pays the replacement value.

Commercial legal expenses insurance (Gewerbliche Rechtsschutzversicherung)

Court proceedings in Germany are expensive because of the cost of expert reports and lawyers. Commercial legal expenses cover pays court costs and lawyers' fees in employment disputes with former staff, conflicts with landlords and disputes with authorities.

What to check

  • Identify your main risk profile (property damage to clients or financial losses).
  • Make sure the sum insured (Deckungssumme) is at least €3–5 million.
  • Check whether subcontractors and freelancers working on your projects are covered by the policy.
  • Agree on the excess (Selbstbeteiligung) to optimise the annual premium.

Example situation

An employee of a cleaning company accidentally damages a client's server rack; the Betriebshaftpflicht policy covers the €45,000 loss, saving the small business from insolvency.

Next step

Do not cut corners on basic liability cover: for a small business, Betriebshaftpflicht usually costs a few hundred euros a year and is the foundation of financial stability.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.