Страхование бизнеса в Германии: гид для предпринимателя

25 September 2024

Doing business in Germany involves a number of obligations and risks, particularly regarding insurance. It is important for entrepreneurs to understand which types of insurance are necessary to protect their business, employees, and personal assets. The choice of insurance is highly individual and depends on the field of activity, the size of the business, and many other factors. In our insurance guide for entrepreneurs in Germany, we will cover key insurances, such as liability and property insurance, and help you figure out which options are right for your specific business.

Types of business insurance in Germany

Public liability insurance for entrepreneurs and businesses

For entrepreneurs and businesses in Germany, there are three main types of public liability insurance: Betriebshaftpflichtversicherung, Berufshaftpflichtversicherung and Vermögensschadenhaftpflichtversicherung. These types of insurance help cover various risks and damage to third parties, providing protection against unforeseen financial losses.

public liability insurance

Commercial liability insurance

It covers damage caused to third parties as a result of the company's activities.
The main aim is to protect the business from claims relating to material or physical damage, that may occur on the premises of the enterprise or during the performance of work.
It does not cover pure financial losses without physical or material damage.

professional indemnity insurance

Professional Indemnity Insurance

Covers professional errors and loss arising from the provision of incorrect professional services or advice.
Compulsory for professionals in high-responsibility fields such as lawyers, architects, doctors and tax consultants, but also relevant to all self-employed freelancers.
Usually includes cover like material both losses and financial (property).

professional indemnity insurance

Insurance against financial loss

Covers only financial losses, caused by professional errors or negligence, without causing physical or financial loss.
It is used for professions where errors can lead purely to economic losses (for example, for auditors, tax consultants, lawyers).

It covers damage caused to third parties as a result of the company's activities.
The main aim is to protect the business from claims relating to material or physical damage, that may occur on the premises of the enterprise or during the performance of work.
It does not cover pure financial losses without physical or material damage.

Covers professional errors and loss arising from the provision of incorrect professional services or advice.
Compulsory for professionals in high-responsibility fields such as lawyers, architects, doctors and tax consultants, but also relevant to all self-employed freelancers.
Usually includes cover like material both losses and financial (property).

Covers only financial losses, caused by professional errors or negligence, without causing physical or financial loss.
It is used for professions where errors can lead purely to economic losses (for example, for auditors, tax consultants, lawyers).

Additional insurance sections

Aside from third-party liability insurance, there are various supplementary insurance packages that protect niche business areas.

Directors' and Officers' liability insurance

Directors’ and Officers’ Liability Insurance – insurance covering the liability of company directors and officers

Mistakes made by management often result in financial losses, for which officials may be held personally liable.

D&O insurance helps companies attract skilled executives by offering protection for their personal assets against professional risks.

Office insurance

Insurance for your office

Insurance covers the cost of replacing or repairing office furniture and equipment (computers, printers, etc.) if they are damaged due to fire, flooding, burglary or other unforeseen situations.
Includes cover for losses resulting from the theft of office property, equipment and documents.

Cyber insurance

Cyber insurance for businesses

Protection against financial loss due to cyber attacks, data breaches, hacking or fraud.
Covers the costs of data recovery, legal costs and crisis management.

Mistakes made by management often result in financial losses, for which officials may be held personally liable.

D&O insurance helps companies attract skilled executives by offering protection for their personal assets against professional risks.

Insurance covers the cost of replacing or repairing office furniture and equipment (computers, printers, etc.) if they are damaged due to fire, flooding, burglary or other unforeseen situations.
Includes cover for losses resulting from the theft of office property, equipment and documents.

Protection against financial loss due to cyber attacks, data breaches, hacking or fraud.
Covers the costs of data recovery, legal costs and crisis management.

public liability insurance

As an entrepreneur, you are liable for any damage that you or your employees may cause to third parties in the course of your business activities or through the sale of your products. The amount of compensation may be so high that it could threaten the very survival of your business.

Commercial activity insurance covers third parties for:
Medical expenses in the event of injury (treatment, rehabilitation, compensation for incapacity to work).
Compensation for damaged property.
Financial losses (missed opportunities, lost profits).
Environmental damage (caused by you or your employees in the course of your business activities to the leased property, buildings or land. For example, groundwater contamination or air pollution).
Legal protection may also be included, which excludes unsubstantiated claims by examining the amount and grounds of a potential lawsuit.

There are two types of Betriebshaftpflichtversicherung (business liability insurance) distinguished — Public liability insurance firm's liability and commercial liability insurance (production liability, commercial liability). The main difference is that Gewerbehaftpflicht requires higher coverage, as it often involves craft and trade businesses. What may be included in Gewerbehaftpflicht insurance:

Product liability (injuries and property damage caused by your own or third-party defective goods).
Liability for discrimination (claims arising from hostility, victimisation, unequal treatment).
Property owner’s and land owner’s liability (insured damage to all buildings and land that you use in your commercial activities).
Developer insurance

Firmenhaftpflicht is more suited to the self-employed and freelancers, as well as office-based companies.

Commercial insurance is compulsory only for certain types of business (doctors, security guards, etc.). However, for small businesses and the self-employed, we recommend taking out this insurance. This is so that in the event of an insured event, the payout for financial compensation for damage caused does not jeopardise the existence of your company.

Business insurance is also suitable for freelancers, consultants, lawyers and auditors. Temporary employees are also covered by this type of business insurance. Your main production facility, office, and warehouses are insured, as well as business trips, exhibitions, trade fairs, and congresses abroad. If financial losses or personal injury result from a breach of confidentiality, the insurance will cover it.

Examples of commercial insurance cover:

A client slipped on the wet floor in your office. They sustained injuries and will require medical treatment and compensation for temporary incapacity.

During a cleaning job at a client's house, one of your workers broke the television.

During the installation of the new wiring, your electricians damaged the internet cable. As a result, the client lost not only internet access, but also several working days, since he works from home.

A waiter in your cafe dropped a guest's laptop off the table. That is also an insured event.

The studio received an order to take up a wedding dress. However, after shortening it, it turned out that the dress was, by mistake, made too short. Insurance coverage applies in this case too.

professional indemnity insurance

It is compulsory insurance for certain types of professions

Professional indemnity insurance makes sense for any activity. But there are professions for which this insurance is compulsory by law: architect, engineer, doctor, lawyer, financial or tax consultant, accountant.

This insurance covers bodily injury and third-party property damage liability. This may be especially relevant for the self-employed or freelancers, who typically lack the reserves to pay high financial compensation (doctors in private practices, dentists, veterinarians, physiotherapists, yoga instructors, architects, engineers, bloggers, journalists, nutritionists, speech therapists, massage therapists, pharmacists, financial, tax and insurance consultants, advertising and marketing professionals, real estate agents).

What damage does professional indemnity insurance cover in Germany:
injuries (medical treatment or rehabilitation)
property (repair or replacement of damaged property)
financial loss (loss of income, lost profit)
environmental damage (water, air and soil pollution)

Examples of professional indemnity insurance use:

The doctor accidentally prescribed a patient a medicine that was contraindicated due to another condition. Compensation for the resulting side effects will be paid by the doctors' professional indemnity insurance.

An engineer approved the design for a canopy addition over a swimming pool without checking it. However, a load capacity calculation error had been made. After construction was completed, the canopy structure collapsed onto the cars parked underneath it. Even in this case, insurance covered the damage caused.

The expert gave incorrect instructions on securing dangerous goods for transport. During delivery, an incident occurred and groundwater in the surrounding area was contaminated. The costs of remediating the environmental damage were covered by professional indemnity insurance.

Professional indemnity insurance cost It depends on your profession, the sum insured, the policy term, and any additional cover. Employer's professional liability insurance also covers employees.

professional indemnity insurance

Financial loss liability insurance. You need this insurance if:

Your activities involve advising clients.
So that in the event of a mistake you do not have to pay out of your own pocket.
If you give a client the wrong advice (for example, the client wants to expand their business, but you made mistakes during the market analysis, resulting in them incurring losses).
You definitely need this insurance if you are a lawyer, notary, tax advisor, or auditor (these are professions with an increased risk of financial losses).

We recommend financial loss liability insurance:
self-employed
freelancers
associations
funds
to advertising agencies
to consulting firms
to clubs
housing cooperatives

In the event of an error resulting in major financial damage, you will not have to pay the claim compensation yourself.

This insurance does not cover bodily injury or property damage. Under this insurance, the insurance company can investigate the claim and its validity, compensate for the damage, defend against unjustified claims and cover the legal costs.

You will receive insurance payouts if

Based on your consultation, the client suffered financial losses.
You submitted the client's VAT return late
you haven't taken into account the new changes in tax legislation

You will NOT receive payment if

You deliberately gave the client incorrect advice
you have not performed the services specified in the contract for the client

The cost of financial loss insurance depends on:

individual occupational risks
desired level of cover

Example of gap insurance usage:

The financial adviser failed to inform the start-up's owners about the possibility of obtaining government funding. As a result, the fledgling company lost 55,000 euros.

Differences between all three types of business liability insurance

All three types of liability insurance – Betriebshaftpflichtversicherung, Berufshaftpflichtversicherung and Vermögensschadenhaftpflichtversicherung – share a common goal: to protect entrepreneurs and companies from financial losses associated with damage caused to third parties. They cover risks related to professional activity and help avoid major compensation expenses in the event of errors, accidents or losses arising in the course of work.

public liability insurance

professional indemnity insurance

Injuries and bodily harm (medical treatment expenses)

Property damage to third parties (repair or replacement). As well as leased land and buildings

Financial loss (loss of earnings,
loss of profits as a result of bodily injury
damage; **as a result of an auditor error,
lawyer, tax or financial adviser)

Environmental damage (water, air, and soil pollution)

During business trips, additional offices

Small and medium-sized enterprises with a turnover of up to €5 million

Freelancers, consulting, self-employed

Employees are insured

Directors' and Officers' liability insurance

Directors and officers liability insurance protects against the financial consequences of professionally incorrect decisions and unjustified claims. Who D&O insurance is suitable for:

director
company management
managing directors
members of the board of directors
top managers
members of the supervisory board
advisory board members
board members of the company

These are all those who make decisions in any field. And who need protection in the event of a professional managerial error, both within the company and towards third parties.

Why it is important to have D&O insurance:

Under German law, decision-makers bear personal financial liability for their decisions. To prevent a professional risk from becoming a personal one, directors' and officers' liability insurance is required for the company (AG, KGaA, GmbH, OHG, KG, GmbH & Co. KG, gGmbH, etc.)

A wrong purchase or miscalculation can lead to multi-million-pound losses. The safeguard in this case is directors' and officers' liability insurance, which will cover damage caused both to the company itself and to partners, suppliers and, for example, shareholders, provided it was unintentional and inadvertent.

Examples of protecting top managers from claims by their own company or third parties:

The board member approves the installation of the new software. However, this software is unsuitable for performing the company's tasks, and now the entire system requires restarting and debugging. Production has stopped and the company is incurring losses.

The managing director of the construction company failed to oversee the profitability check and opened a new branch.

Office insurance

For a successful business, coordinated teamwork in the office and its smooth operation are essential. And although the risks in office work are kept to a minimum, even the sudden theft of office equipment can paralyse the work of the entire business and lead to financial costs.

Fire, theft, a flood in your office caused by neighbours — such incidents can damage office equipment, goods and consumables. Any type of business requires property insurance for the office and warehouse (companies, the self-employed, freelancers, retail or online trade, etc.).

Sometimes office property insurance is referred to as: business property insurance, warehouse insurance, production equipment insurance. If you compare the insurance policy details, make sure they are the same.

It is important to bear in mind that in the insurance not included motor insurance, pet insurance, damage caused in the course of military operations or as a result of radioactive exposure, etc.

What is insured:
office furniture
storage systems
electronics
goods and consumables
advertising signs and awnings
paintings, antiques, securities
tools and equipment
bicycles (working)
customer property left for repair

Examples of insured events:

A deep fat fryer caught fire in the restaurant kitchen. The fire spread quickly and destroyed the storeroom. Kitchen equipment and the contents of the storeroom were damaged. Insurance will pay for the damage.

Burglaries broke into a small business office looking for money. They found no cash, but took the laptops and the coffee machine. Windows were smashed and the security grilles were forced out. Insurance covers the loss and damaged property.

Heavy torrential rain flooded the workshop. Production equipment and tools have been damaged.

Due to the rains, water from the terrace flooded the office. The floor and walls became damp. Some of the office equipment was completely damaged by water. The water was pumped out and the office had to be dried. This took 8 weeks, during which the firm was unable to finish two projects and suffered financial losses.

Professional photography equipment was stolen from a photographer.

A fire broke out in the carpentry workshop. To top it all off, the surviving furniture and machinery were flooded with water during the firefighting.

Office property insurance covers пdamaged technical and commercial equipment, including machinery, goods, consumables, and computer software.

Commercial property insurance is designed to protect the property of businesses, companies and shops. It includes commercial equipment, tools, machinery, and mechanisms related to running a business, and provides protection for them.

Cyber insurance

According to a Bitkom study, over the past 12 months, 81 percent of companies in the country lost data following cyber thefts. The total damage amounts to €266 billion.

Data from the Allianz website shows that 9 out of 10 German companies suffered from cyberattacks in 2020 and 2021. The damage is estimated at 223 billion euros.

Cyberattacks (data theft, malware, commercial espionage) disrupt operational processes, block computers and internal corporate information systems, and steal confidential data and client databases.

Cyber risks are all sorts of threats that companies and individuals face in the digital sphere. With each passing year these risks keep growing and the number of cyberattacks is increasing.

Types of cyber risk:
malware infection
circumvention of identification procedures
phishing (identity theft via fake websites, emails or text messages)
password cracking
ransomware attack
cross-site scripting (injection of malicious code into web pages)

Protection against cyber attacks involves:
timely updating of operating systems and software
employee training in safe working online and with data
installation of up-to-date antivirus programmes
clear action plan in the event of a cyber attack

Cyber insurance coverage can be extended to your branches and subsidiary companies. If your employees access your work network from home or on trains, they are also protected by this insurance.

Example of cyber insurance in action:

A dental clinic receives a CV by email. The email hides a Trojan virus that blocks access to the database containing all patient records. The clinic's operations are paralysed. The extortionists are demanding 20,000 euros.

The work of the tax consultancy has been stopped following a cyberattack. Providing consultations in digital format is impossible. Access to the client database has been blocked. The extortionists are demanding 15,000 euros.

What to do in the event of a cyberattack on your company:

Keep calm and follow the steps of your crisis plan
call your insurance company
set up a crisis management team
notify everyone who could potentially have been affected by the cyber attack (customers, suppliers, partners)
launch the crisis exit programme in cooperation with your insurance company

The cost of cyber insurance depends on:

the size of your firm
risk levels in your field of activity
of the required safety standards

This insurance also covers the event that your employee intentionally deletes data or publishes it online. But this no longer applies to senior management.

Whatever company you build, in whatever professional field you work — you need commercial risk protection. So that you can focus on the process, development, expansion and prospects of your business. And making the right choice is very easy — at a meeting with a professional consultant you will be able to ask all your questions and get answers to them. It is comfortable and simple. Choose a convenient time and book a free consultation with Finber.