Liability insurance for contractors and freelancers in Germany
The agency sends the contract, and somewhere in it is a clause on insurance: professional indemnity and public liability with stated minimum limits, proof to be supplied before the project starts. This page explains what that means in Germany and how to get it sorted.
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Self-employed contractors in Germany are liable for their mistakes with their private assets. Two covers deal with that. Business liability insurance (Betriebshaftpflicht) pays when a person is injured or property is damaged. Professional indemnity insurance (Vermögensschadenhaftpflicht) pays for pure financial loss, for example when faulty work costs the client money.
For IT contractors, consultants and engineers, insurers combine both covers in one policy. That combined policy is normally what agencies and end clients mean when they ask for proof of insurance.
Is liability insurance mandatory for freelancers in Germany?
By law only in certain regulated professions. For most contractors the obligation is contractual: agencies and clients make cover a condition of the engagement. Separately from that, health insurance is compulsory for everyone resident in Germany, including the self-employed.
What a contractor policy usually includes
Professional indemnity
Pure financial loss caused by errors in your work, advice or software.
Business liability
Injury and property damage, including at the client’s premises.
Defence costs
Examination of claims and defence against unjustified demands.
Data and confidentiality
Breaches of confidentiality and data protection duties.
Work abroad
Projects outside Germany by agreement; USA and Canada need explicit cover.
Certificate of insurance
Proof of cover for your agency or client, in English where the insurer provides it.
What agencies and clients typically ask for
Contracts usually name minimum limits for financial loss and for injury and property damage, and ask for a certificate before the start date. Read the clause carefully: some contracts also require the cover to be maintained for a period after the project ends. Send us the clause and we match the policy to it.
I already have a policy from my home country
A policy from abroad does not automatically help in Germany. Insurers from outside the EU and EEA generally cannot cover German risks, the policy may not respond to claims under German law, and German clients often insist on a certificate from an insurer they know. A German policy avoids the discussion.
What does it cost?
IT contractors and consultants often pay a few hundred euros a year for combined cover with limits of €1 million or more. The price depends on your field, turnover and the limits required. Insurance premium tax of 19% is added; only a quote is binding.
One point insurance cannot solve: whether an engagement counts as genuine self-employment or as disguised employment (Scheinselbständigkeit) is a legal question for your lawyer or tax adviser.
Who is behind this page
Vivid Protect GmbH, insurance broker licensed under Section 34d (1) of the German Trade Regulation Act (GewO), broker register no. D-Y7GD-S7M7K-61, managing director Alexia Manukwem. About us
General information, not legal or tax advice. Figures are orientation values and not an offer.
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FAQ
Frequently asked questions
Do freelancers need liability insurance in Germany?
It is required by law only in certain regulated professions. In practice most agencies and clients make professional indemnity and business liability cover a condition of the contract.
How quickly can I get a certificate of insurance?
For standard risks such as IT contracting or consulting, cover can often be arranged within a few days once we have your details and the contract clause. The certificate follows from the insurer.
Am I covered for clients outside Germany?
Many policies cover work in Europe or worldwide, but claims in the USA and Canada are usually excluded unless agreed. Tell us where your clients are and under which law your contracts run.
Do you also advise on health insurance for the self-employed?
Yes. Health insurance is compulsory for residents of Germany. We compare private health insurance and daily sickness allowance cover; please get in touch.
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