Commercial & Business Insurance Solutions
for Business and Trade in Germany
Commercial and Business Insurances in Germany
Professional advice for expats working in Germany
Seven most important business insurances in Germany:
Content Insurance
Machine Cover
Legal Insurance
Financial Loss Insurance
Liability Insurance
Physical Good Insurance
Health & Accident Insurance
The German insurance system is one of the most complicated in the world. Almost all risks can be covered by an appropriate commercial insurance in Germany, however, we know from experience that it is quite confusing and time-consuming for your subsidiaries to identify and select the right insurance cover for their specific needs. As independent insurance brokers, we enjoy the freedom to analyze and select the best insurance solution cover for our clients amongst more than 120 insurance providers. We can make sure that our clients obtain the best price/performance ratio insurance can provide while their stay in Germany. On top of that, we stand behind our clients in the case of insurance damage and assist them in claiming their benefits.
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A brief overview about commercial insurances in Germany
Content Insurance in Germany:
„Inhaltsversicherung“
What damage does a content insurance cover?
As a rule, it covers damage caused by fire, storm and hail, water, natural hazards, robbery, vandalism and burglary. In this case, the insurance compensates for the financial damage that you have suffered as a result of the damage to the inventory and goods. Other costs incurred in connection with the damage will also be reimbursed. These can be deletion costs, clean-up work and expenses for restoring data, files and important documents.
The more stock goods and operating equipment your company maintains, the more important content insurance is for the existential security of the company in the event of damage.
Carelessness when operating electrical devices must be covered by an extra component, the so-called electronics insurance.
If the damage is such that the business cannot be opened for a certain period of time, business interruption insurance will step in. In this case, the insurer compensates the customer for the lost profit and the fixed costs for the duration of the business interruption.
As an additional component to content insurance, companies can also apply for protection against natural hazards. This extends the insurance cover to damage caused by floods, backwater, subsidence, earthquakes or snow avalanches.
Since every company has different needs when it comes to arranging its contents insurance (high cash balance, high inventory, sprinkler system protection, etc.), we recommend individual advice or a site inspection. Especially in the case of contents insurance, under-insurance can mean a significant financial loss – but over-insurance can mean overpriced premiums.
Machine Cover in Germany:
„Maschinenversicherung“
Who needs a machinery breakdown insurance?
All companies, businesses, workshops and farms that work in their premises with large and expensive, static or mobile machines.
Which machines are covered by machine breakdown insurance?
Mobile machines such as cranes, excavators and forklifts.
Stationary machines such as washing systems, wind turbines, packaging machines, milling machines, etc.
Boilers, engines, turbines, generators, drilling, turning and milling machines, printing and folding machines, elevators, overhead cranes, conveyor systems, seed drills, combine harvesters, straw balers, just to name a few.
What damage is covered by machine breakdown insurance?
Operating errors due to negligence, vandalism, construction and material defects, short circuits and overvoltage. Even with damage caused by frost and ice.
What damage is not covered by machine breakdown insurance?
Damage caused by wear and tear of the machine, earthquakes, nuclear energy or war will not be compensated. In the case of stationary machines, damage caused by fire or theft is also not reimbursed. This is where content insurance comes into play. This covers damage caused by fire, burglary, storm and water damage.
What value is insured with machine breakdown insurance?
If the machine needs to be repaired, the insurance company will pay for the repairs. In some cases, the service is based on the new value of the machine, in some cases the current value is replaced. In the case of capital-intensive machines in particular, the quality of the insurance cover can prevent your company from incurring costs that threaten its existence if the machine breaks down. We recommend that you discuss these details with your insurance broker.
Contact us for a tailor-made offer with the best conditions. We would also be happy to provide you with a free quote comparison!
Legal Assistance Insurance in Germany:
„Rechtschutzversicherung“
One of the most important insurances in Germany. It helps you with legal consultation and financial support when having a legal dispute.
As in Germany most of the severe legal problems are solved by the court, regardless if there are disagreements with tax authorities, employers, landlords or merchants we strongly recommend to take on legal insurance. Especially for an expat, living abroad and experiencing totally different traditions and legal systems from home and not understanding the complicated foreign terminologies. The legal insurance covers all costs related to expenses for attorneys and court no matter if you win the case or not. If you are self-employed you will need special coverage for professionals.
Financial Loss Insurance in Germany:
„Vermögensschadenversicherung“
Mistakes or miscalculations can cause a significant financial loss for the customer or client. If this occurs, the protection of the pecuniary damage liability insurance comes into effect.
For whom is financial loss liability insurance useful?
Financial loss liability insurance is intended for all freelancers
– giving information, giving advice
– perform services
– mediate contracts
– create certificates
– write appraisals
– manage funds
and as a result, in the event of incorrect action, can cause financial damage to a third party.
On the one hand, pecuniary damage liability insures damage to third parties caused by incorrect action, e.g.
– advising error
– miscalculation
– incorrect information
– wrong litigation
– invalid contractual arrangements
on the other hand, damage to third parties is insured, the cause of which is the faulty omission, such as:
– missed deadlines
– incomplete information
– failed applications
– non-redirects
This applies to the policyholder and their vicarious agents.
What damage does financial loss liability insurance cover?
All damage that is neither property damage nor personal injury is insured. Furthermore, the defense against unjustified claims and the associated costs.
How high is the coverage of the pecuniary damage liability insurance?
The amount of damage can usually be determined on the basis of the highest possible conceivable damage. The sums insured generally range between €50,000 and €1 million per insured event. In total, a maximum of twice the amount is available per insurance year. Higher sums insured are also available on request. Please ask us about this.
If the claims prove to be justified after examining the reasons and the amount, the corresponding amount will be settled.
Liability Insurance in Germany:
„Haftpflichtversicherung“
The liability insurance protects you if you cause by accident or negligence injury to a person or his property. Damages of this kind can obviously be very high. For more loads more of money. Please note that this third-party private liability insurance will not provide cover for car accidents as this risk must be covered by a separate vehicle car liability insurance, which is obligatory in Germany.
Physical Good Insurance
In Germany, physical goods insurance, often referred to as „Sachversicherung,“ encompasses various types of coverage for tangible assets, including personal property, homes, and businesses. Here’s an overview of the key aspects of physical goods insurance policies in Germany:
- Coverage Options: Physical goods insurance policies in Germany offer coverage for a wide range of assets, including residential properties, commercial buildings, inventory, equipment, and personal belongings. Depending on the type of policy, coverage can extend to protect against risks such as fire, theft, vandalism, natural disasters, and other specified perils.
- Property Insurance (Gebäudeversicherung): This type of insurance covers damage to buildings and structures, including residential homes, commercial properties, and rental units. It typically protects against risks like fire, lightning, explosion, storm damage, and vandalism. Property insurance is often mandatory for homeowners and property owners with mortgages.
- Household Contents Insurance (Hausratversicherung): Household contents insurance covers the personal belongings and furnishings inside a home against damage, theft, and loss. It can include coverage for items such as furniture, electronics, clothing, jewelry, and other valuables. This type of insurance is optional but highly recommended for renters and homeowners alike.
- Commercial Property Insurance (Betriebsinhaltsversicherung): Businesses in Germany can purchase commercial property insurance to protect their physical assets, including buildings, equipment, inventory, and supplies, against various risks. This coverage helps businesses recover from losses due to events like fire, theft, water damage, and natural disasters.
- Liability Insurance (Haftpflichtversicherung): While not strictly a form of physical goods insurance, liability insurance is often included in property insurance policies in Germany. Liability coverage protects policyholders against legal liability for damages or injuries caused to others on their property.
- Policy Terms and Conditions: Like elsewhere, physical goods insurance policies in Germany outline the terms, conditions, and exclusions of coverage. It’s essential for policyholders to carefully review these details to understand their level of protection and any limitations of the policy.
- Premiums and Deductibles: Policyholders pay premiums to maintain their insurance coverage, with the cost influenced by factors such as the value of insured property, the level of coverage selected, and the perceived risk of loss. Additionally, policies may include deductibles, which are the amounts policyholders must pay out of pocket before insurance coverage applies.
- Claims Process: In the event of damage, loss, or theft, policyholders must file a claim with their insurance provider. The claims process involves documenting the incident, providing evidence of the damage or loss, and working with the insurer to assess the claim and determine the compensation amount.
Private Accident Insurance in Germany:
„Unfallversicherung“
This cover pays out high lump-sum benefits (often between 150.000 and 550.000 €) or an accident pension in case of severe accidents causing long lasting physical disabilities.
This policy helps to offset the long term high financial losses and burdens which arise due to injuries due to an accident and the extra treatment and home adaptation costs that might arise due to the accident. It may also include costs for emergency rescues, cover for some specified illnesses, accidental death payments and livelong accident pensions.
Business Insurances in Germany:
„Produkthaftpflicht“
Tailor-made insurance solutions for international companies founding subsidiaries in Germany. Professional insurance advice for freelancers starting their business in Germany.
For more detailed information please contact us for a personal consultation.
Cyber Insurances in Germany:
„Cyber Versicherung“
German cyber insurance aims to provide businesses with financial protection and support in the event of cyber incidents, while also promoting proactive risk management and cybersecurity measures.
Health Insurance in Germany:
„Krankenversicherung“
By law everybody living and working in Germany has to be health-insured by a certified German health insurance provider.
We offer private and public health insurance plans from all known German insurance companies selected for your own needs. There are several important aspects of the German insurance system that have to be considered before taking a decision. The following scenarios will give an impression of which type of health insurance scheme might be suitable:
Employees who live with their families in Germany and have a gross income of less than 57,600 € in 2017:
Only public health insurance (GKV) might be accessible for you, however, the wife/husband and all children living in the same household are co-insured are covered as well without additional contribution. The benefit of public insurance comprises basic medical treatment in Germany and EU countries. The employer contributes around half of the premium. However, the monthly rate varies with income. The higher the earning the higher the premium.
Self-employed expats and employees earning more than 57.600 € gross income in 2017:
Private health insurance covers high quality medical treatments all over the world and allows free choice of specialist doctors, hospitals, physicians and dentists. However, the applicant must be in a good health condition in order to be accepted by the provider. Also for an employee, the company contributes 50% of the premium including a contribution for a spouse. The premiums are mostly much more favorable than public insurance despite much better benefits. The monthly rate does not vary with the income, it depends only on the entry age and benefits chosen.
Please note that the mentioned cases show a window of the complex health insurance field. In any case, it is highly recommendable to consult a professional insurance broker in order to check upfront insurability and to find the best plan among 120 insurance provider companies and more than 700 different tariffs.
New health insurance program in Germany with a monthly termination option, medical video consultation in more than 20 languages and many more advantages.
Please contact us for further information.
Visit our international insurance website
Special information about business insurance for foreign companies in Germany including consultation and care services for companies to be founded: leeb-business-insurance-germany.co.uk
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