Legal insurance for freelancers and firms in Germany

Updated:
09.10.2026

Protection that works for your business.

Why do entrepreneurs need legal protection?

Running a business is not only about opportunities, but also about legal risks. Entrepreneurs (Gewerbe) and freelancers (Freiberufler) face a range of legal issues: tax audits, disputes with clients and suppliers, commercial property leases, and employment regulations.

You can conduct business completely correctly and follow all the rules, but that will not protect you from a situation where someone makes a claim or files a complaint. In modern practice, just one disgruntled client, partner or formal mistake is enough for a legal process to begin.

Legal expenses insurance takes these worries off your hands by covering solicitor and court fees.

Main modules

Most insurance companies offer a modular system. You can choose only those areas that are relevant to your business.

Firmen-Rechtsschutz – Commercial Legal Protection

This module covers conflicts arising in business activity.

The main components of this insurance include:

Representation in employment disputes: assistance with employee disputes, including issues regarding dismissal or working conditions.
Tax legal protection: assistance in disputes with the tax authorities before the tax court (Finanzgericht); support during a tax audit (Betriebsprüfung) is a separate option that not every policy includes.
Administrative law protection: representation of company interests in disputes with state institutions or local government authorities; not included in every policy (the GDV model terms provide it only for traffic-law matters).
Property protection: legal support for commercial property disputes, such as conflicts with landlords or neighbours.

Verkehrs-Rechtsschutz – Motor Legal Protection

You and your employees are frequently on the move, and with every kilometre not only does the workload increase, but also the risk of running into legal conflicts: whether it is a road traffic accident or accusations of traffic violations.

The insurance company will provide legal support:

Immobilien-Rechtsschutz – Property Legal Protection

The real estate housing your office, production facilities or warehouses is the foundation of your business. Legal disputes relating to these properties can consume a significant amount of time, resources and, in critical cases, threaten the stability of the entire company.

Legal protection in the real estate sector reliably safeguards your interests — whether you are a tenant, lessee or owner. This enables you to focus entirely on running your business.

Additional modules

JurCyber – Cyber security

According to the Bitkom study “Wirtschaftsschutz 2026”, in the last 12 months alone two thirds of companies in Germany were hit by data theft, espionage or sabotage, and another 29 % suspect they were; cyber attacks account for three quarters of the damage. The damage often goes unnoticed until the last moment, and the perpetrators go unpunished. The consequences can be serious: from downtime to lost customer trust and costly system recovery.

Legal cyber defence will support you if:

It is necessary to recover damages or obtain an injunction
a dispute has arisen with the regulatory authorities regarding the processing of personal data
State support for digitalisation or IT security has been denied
urgent IT assistance is required following an attack and other issues.

Reputations-Rechtsschutz – Reputation Protection

Reputation is a strategic asset for your business. Its loss can lead to serious consequences, and recovery requires time, resources and professional support. Reputation risks are among the most significant threats to companies in Germany.

With legal reputation protection, you get:

This will help you maintain customer trust and business resilience — even in a crisis situation.

Inkasso-Service (debt collection service)

Debt recovery services integrated into legal insurance provide clients with effective tools for recovering debts, minimising financial loss and stress.

For example, JurMoneyPlus by Roland and Forderungsmanagement by ARAG offer a comprehensive approach to receivables management, which includes pre-trial debt collection, creditworthiness checks on debtors, and legal support in the event of court proceedings.

These services not only help recover debts, but also prevent future problems, ensuring the financial stability of clients.

Dokumenten- und Vertrags-Check – business document and contract review

An improperly drafted contract or a missing clause in the terms of cooperation can result in serious legal consequences.

Service Dokumenten-Check — a professional legal assessment of your business documents:

The insurer’s partner lawyers will check the texts for legal accuracy, risks and compliance with current legislation. This is especially important when working with clients, contractors and international partners.

Web-Check – website auditing for your company

Your website is not only a business card, but also a potential source of legal risks. The Web-Check module allows you to be confident that your company’s online presence complies with regulatory requirements:

Especially relevant for online shops, freelancers, agencies and anyone who collects or processes personal data.

Straf-Rechtsschutz für Firmen – Protection Against Criminal Law Risks

Even when conducting business in good faith, entrepreneurs and their employees can find themselves drawn into criminal proceedings—for example, due to allegations of violating tax laws, health and safety regulations, environmental standards or safety rules. Such allegations often arise during inspections or by mistake, but require an immediate legal response.

The module Straf-Rechtsschutz für Firmen provides protection against the consequences of such situations: it covers lawyers’ fees, legal costs, expert assessments and consultancy at all stages—from interrogation to a potential trial. This enables the company to respond promptly to accusations and protect its reputation and interests. Cover applies up to the sum insured and minus the excess (Selbstbeteiligung). If you are accused of intentional conduct, the insurer under the model terms does not pay at first (it pays retroactively only if you are not convicted of intent); there is no cover for a Verbrechen (serious crime) or for offences that can only be committed intentionally, such as fraud (Betrug).

Legal expenses insurance consultation for business

The modules listed above are just a part of what business legal expenses insurance can include. Depending on the tariff and the insurance company, you may also receive legal support in matters of copyright, alternative dispute resolution (mediation) and other specific areas.

If you would like to figure out which specific modules suit your business needs and what additional options are available, we will be happy to discuss this with you personally.

Book a consultation, and we’ll find a solution that really works for you.

Book a consultation

Customer service

As part of business legal expenses insurance, insurance companies offer entrepreneurs convenient channels to obtain legal support and interact with the service team:

Helpline — 24/7 access to lawyers for an initial consultation and a quick assessment of the situation.
Online account — client portal for submitting requests, tracking cases, uploading documents and communicating with lawyers.
Live chat support — the ability to ask a question in real time and get a prompt response without phone calls.
Email legal support — convenient for requests with attachments and details, as well as if you are not yet fluent enough in German to discuss your problem over the phone.
Online access to templates and documents — templates for contracts, notices, general terms and conditions (AGB), complaints and legal claims.

These tools make it possible to get expert help quickly and without unnecessary red tape — at any time and from any location.

What does the cost of legal expenses insurance depend on?

The cost of legal insurance for entrepreneurs is determined individually and depends on the following key factors:

Business structure
Einzelunternehmen (sole trader), GbR (civil-law partnership), GmbH (private limited company) or AG (public limited company) — the more complex the structure, the higher the risk and, accordingly, the cost.

Field of activity
The risks of legal disputes are higher, for example, in construction, logistics, and retail than in consultancy services or IT.

Annual turnover of the company
Higher revenue usually means more active business operations, and consequently a greater volume of potential conflicts.

Number of employees
With staff, the likelihood of labour disputes and conflict situations increases, which affects the cost.

Selected modules and scope of cover
The more legal areas you include (e.g. transport, property, cyber risk, reputation), the higher the premium will be.

Excess (Selbstbeteiligung)
When choosing a policy with an excess (for example, €150–300 per claim), the monthly premium is significantly reduced.

Keep the waiting period (Wartezeit) in mind: with most insurers it is three months from the start of the contract, with some six, and a dispute that is already under way or clearly coming cannot be insured.

Choose a reliable partner:

The modern legal risk insurance market features a multitude of offerings, which can make choosing the optimal option difficult. To make your task easier, we recommend paying attention to the market leaders—companies whose reliability, experience and quality of service have been proven over time and confirmed by numerous clients. These companies offer a wide range of products that take into account the individual needs of each client, and provide a high level of service and legal support.

Allianz:
Reliability and experience: Allianz is a global insurance giant with years of experience, providing clients with peace of mind.
A wide range of services: The company offers a variety of legal insurance packages for different needs.
Developed service network: Allianz has an extensive network, ensuring easy access to legal support.

Roland Rechtsschutz
Specialisation in legal expenses insurance: Roland is a specialist company offering expert solutions and a high level of service. Many well-known German insurance companies offer legal expenses insurance specifically under the Roland brand.
Flexible tariffs and bespoke solutions: The company offers flexible tariffs, allowing clients to choose the optimal option.
Strong focus on service: The company places a high priority on the quality of customer service.

ARAG
Long-standing experience and traditions: ARAG is one of the oldest and most well-known companies, guaranteeing reliability and professionalism.
Comprehensive solutions and consultancy services: The company offers a wide range of insurance products and legal support.
Rapid development of digital services: The company is introducing modern technology by providing convenient online services.

Legal expenses insurance is not just a formality, but a strategically important tool to protect your business from unforeseen legal risks. It helps preserve resources, peace of mind and reputation, allowing you to focus on the development of your company. If you would like to find the optimal solution tailored to the specifics of your activities, we would be delighted to advise you personally and offer a comparison of leading insurers’ policies.

Frequently asked questions about legal expenses insurance for entrepreneurs and freelancers

What does legal expenses insurance for the self-employed pay for, and how is it different from Haftpflicht (liability insurance)?

It does not pay for damage you cause to other people: that is the job of Haftpflicht (liability insurance). Under the model terms of the GDV, the German insurance association, legal expenses insurance (Rechtsschutzversicherung) pays for your own dispute: your lawyer up to the statutory fee under the RVG (Rechtsanwaltsvergütungsgesetz, the German lawyers’ fees act), court costs including the allowance for witnesses and experts called by the court, and the other side’s costs if the court orders you to repay them. All of it applies up to the sum insured and minus your excess (Selbstbeteiligung). If a client claims damages from you, Haftpflicht applies. If you cannot enforce a claim of your own against a client, legal expenses insurance applies.

Does my private legal expenses insurance cover disputes in my business?

No, and people often get this wrong. Under the model terms of the GDV, the German insurance association (ARB 2021), private cover does not apply where the matter concerns a business (Gewerbe), freelance work or another self-employed activity. Berufs-Rechtsschutz (cover for your job) is meant for non-self-employed work, for example as an employee, civil servant or judge. For your business, the cost risk of self-employment has to be included expressly, and the cover only applies to the activity named in the Versicherungsschein (policy schedule). In a consultation I first look at the policy you already have.

When does legal expenses insurance start to apply, and can I insure a dispute that has already begun?

A dispute that is already under way, or clearly on its way, cannot be insured: the Verbraucherzentrale (the consumer advice service) says there is no cover in that case. The insured event is dated by the breach itself, not by the date of the lawyer’s letter. Then there is the Wartezeit (waiting period): most insurers apply three months from the start of the contract, some six. Under the model terms of the GDV (the German insurance association) it applies to almost every type of cover, including employment disputes and, where your policy has them, contract and tax disputes, whilst cover for enforcing your own damages claims and for criminal proceedings applies at once. If the previous policy ran without a gap, the waiting period is normally waived. In consultations I often hear: “I will take it out when I need it.” It does not work like that.

Does the insurance pay if a client does not pay an invoice or disputes a contract?

The insurer does not settle the debt itself. It pays the lawyer and the court in contract disputes, but only if your policy includes contract legal expenses cover (Vertrags-Rechtsschutz). In many business policies it is not part of the basic package and is added as a separate module, so check your policy. The insurer may refuse cover if the chances of success are too low or the costs are grossly out of proportion to the aim, and with a small invoice that is quite possible. Your lawyer can then give a reasoned opinion on the prospects, which the insurer pays for and which, as a rule, binds both sides. A dispute between a commercial agent (Handelsvertreter) and the principal over commission is usually a contract dispute too.

Does the insurance pay for a lawyer during a tax audit (Betriebsprüfung)?

Not for the audit itself, as a rule. Insurers often include tax legal expenses cover (Steuer-Rechtsschutz) in their business packages, but under the model terms of the GDV (the German insurance association) it only starts once court proceedings begin and only applies before German courts: the Finanzgericht (tax court) or the Verwaltungsgericht (administrative court). Talks with the auditor and an objection to the tax assessment (Einspruch against the Steuerbescheid) are not normally part of it. Some policies let you add support during an audit as a separate option, so ask about it directly before you sign. Without that option, everything that happens before court is at your own expense.

Does the insurance pay for legal advice when there is no dispute yet?

As a rule, no. In the model terms of the GDV (the German insurance association), a lawyer’s advice is reimbursed separately only in family, civil partnership and inheritance matters. For a business, cover starts once a dispute has arisen. That makes legal support without a dispute more of an insurer’s service than an insurance payment. Many insurers offer a telephone helpline with a lawyer; check whether your policy includes it. A few policies for employers also reimburse advice on employment law up to a limit. A consultation “just in case”, for example on a contract with a new partner, is at your own expense.