Insurance for foreign companies setting up in Germany
Setting up a GmbH or a branch office in Germany? Some covers are required by law, some by your landlord and customers, and some simply by common sense. This page sorts them — in English, from a licensed broker in Munich.
Licensed broker (§ 34d GewO)
Reg. no. D-Y7GD-S7M7K-61
VEMA partner
Access to special concepts from 100+ insurers
On your side
We work for you — not for an insurer
Munich & worldwide
Local policies for foreign subsidiaries
Germany has no single “business insurance” requirement tied to the legal form. A GmbH as such does not have to buy any particular policy. What you need depends on what the company does, whether it employs people, keeps vehicles or works in a regulated profession.
For foreign-owned companies the practical question is usually a different one: which risks does the group programme already cover, where does German law or a German counterparty require a policy issued in Germany, and who handles a claim locally and in German when something happens.
What is mandatory by law?
Motor third-party liability insurance for every registered vehicle. Statutory accident insurance for employees through the relevant Berufsgenossenschaft, and social security contributions (health, pension, unemployment and long-term care) through payroll — these are public schemes, not policies you buy from an insurer. And compulsory professional liability insurance for certain regulated professions and trades, for example lawyers, tax advisers, insurance intermediaries, residential property managers and security firms.
What German entities usually put in place first
Business liability
Betriebshaftpflicht: bodily injury and property damage claims by third parties. Landlords, customers and tenders routinely ask for proof.
Contents and business interruption
Office or warehouse contents, stock and the loss of income after an insured event. Often required by lessors and lenders.
D&O
Managing directors of a GmbH are personally liable with their private assets. Many directors make D&O a condition of taking the appointment.
Cyber
Incident response, data restoration and liability. Increasingly part of customers’ supplier questionnaires.
Professional indemnity
Pure financial loss caused by advice, software or services — excluded from ordinary business liability.
Motor and fleet
Compulsory for each vehicle; registration is only possible with an insurer’s electronic confirmation of cover (eVB).
When to arrange what
Before you sign the lease: business liability and contents cover, because most commercial leases require both. Before the first employee starts: registration with the Berufsgenossenschaft and payroll set-up with your tax adviser. Before the first vehicle is registered: motor cover and the eVB number. Before the first delivery or go-live: product liability or professional indemnity, depending on what you sell.
D&O should be in place from the day the managing director is entered in the commercial register. Liability starts with the appointment, not with the first revenue.
How a German policy fits into your group programme
Many groups run a master policy at headquarters and expect it to cover all subsidiaries. For Germany that often works only in part. Insurers licensed in the EU or EEA can generally write German risks; insurers from other countries generally cannot. German insurance premium tax (currently 19% for most lines) is due on the German share of the risk. And German landlords, customers and authorities typically expect a certificate issued in German by an insurer they know.
The usual solution is a local policy issued in Germany that is integrated into the master programme, so that limits and conditions stay aligned and nothing is insured twice. We arrange the local policy, coordinate with your group broker or risk manager and report to you in English.
Points that are easy to miss
German employees have a statutory right to convert part of their salary into a company pension, so you will need a pension provider sooner than you might expect. Policies normally run for one year and renew automatically; most can only be cancelled three months before the renewal date. And cover applies only to the activities described in the policy — if the German entity starts doing something new, the description has to follow.
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.
Last updated:
FAQ
Frequently asked questions
Which insurance is mandatory for a German GmbH?
None that follows from the legal form alone. Mandatory are motor third-party liability for registered vehicles, statutory accident insurance for employees via the Berufsgenossenschaft and social security through payroll. Certain regulated professions and trades must also carry professional liability insurance. Everything else depends on contracts and on the risk you are prepared to carry yourself.
Can our parent company’s insurer cover the German subsidiary?
Often only in part. EU and EEA insurers can generally cover German risks; insurers from other countries generally cannot. German premium tax must be paid in any case, and German counterparties usually expect a German certificate. A local policy integrated into your master programme is the common solution.
Does the managing director of a GmbH need D&O insurance?
It is not required by law, but managing directors are personally liable to the company under Section 43 of the German Limited Liability Companies Act (GmbHG), and they carry personal duties in a financial crisis. D&O insurance pays defence costs and justified claims. It is normally taken out and paid for by the company.
How quickly can cover be arranged?
Standard covers such as business liability or contents can often be bound within a few days once we have the risk information. D&O, cyber and larger property risks take longer because insurers ask for more detail.
Do you work in English?
Yes. We advise, correspond and report in English. Most German insurers issue their policy wordings in German; we explain them to you and obtain certificates of insurance in English where the insurer provides them.
Related
More on insurance in Germany
Let's talk about your insurance cover.
Free and without obligation: we review your existing policies and show you where the gaps and savings are.
Or without a meeting: send us your policies for review →