Business liability
With product liability, environmental liability for every declared installation and environmental damage insurance for clean-up ordered by the authorities.
Insurance broker / Business types / Manufacturing
Insurance for chemical and pharmaceutical businesses in Germany
In chemicals, one leaking valve is enough to turn an operational mishap into an environmental case involving the authorities, the neighbours and the press. Then there are products that end up in paints, cleaners or medicines used by thousands of people. This page sets out the insurance chemical and pharmaceutical firms in Germany need and what to expect.
The question almost everyone asks first
Is general liability with environmental liability enough?
For claims made by neighbours or other third parties, yes, provided all installations are declared correctly. But under the Environmental Damage Act (Umweltschadensgesetz) the authorities can require you to restore waters, protected species or habitats even if nobody sues. Only environmental damage insurance covers that. In chemicals, the two belong together.
What goes wrong in this trade
- 01
Substances escape
A leak at a tank, a burst hose during filling, firefighting water running off after a fire: substances reach the sewer, the soil or a stream.
- 02
A runaway reaction
Wrong dosing, a cooling failure or contaminated raw materials set off a reaction that destroys plant and building.
- 03
An error in the formula
A cleaner attacks surfaces, an adhesive does not hold, an active ingredient is wrongly dosed. The manufacturer carries the consequences.
- 04
Recall from retail
Batches have to be pulled back from shelves and warehouses. Retailers' flat fees per store, logistics and disposal quickly cost more than the goods.
- 05
The plant is shut down
After an incident the plant often stays closed until experts and the authorities release it. That takes months.
- 06
Hazardous substances at work
Chemical burns, poisoning and skin diseases are the typical workplace accidents and occupational illnesses in the sector.
Compared with other trades, 1 low to 5 high.
The insurance you need
Essential
Business contents
Replaces plant, raw materials and finished goods after fire, explosion, burst pipes and storm.
Business interruption
After a fire or explosion, business interruption cover secures fixed costs and profit until the plant is released again.
Strongly advised
Machinery breakdown
For reactors, agitators, pumps and filling lines that fail through operator error or material fatigue.
Cyber insurance
Process control systems and formula data are a rewarding target for attackers, and an outage can affect safety.
Cargo insurance
For raw materials and finished goods in transit, including dangerous goods, where an accident quickly brings follow-on costs.
Depends on the business
D&O insurance
Managing directors are personally liable for environmental breaches and organisational failings; D&O protects their private assets.
Business legal expenses
With environmental criminal legal protection, in case you or your staff are investigated after a leak.
What it costs: example prices
Premiums in chemicals and pharma are almost always calculated individually. What matters are the substances, the quantities, the installations covered by the Water Resources Act and whether you supply consumers or industry.
| Insurance | Example | Typical range |
|---|---|---|
| Business liability | Small blending plant for cleaning products, up to €2 million turnover, with environmental liability | around €1,500 to €4,500 a year |
| Business liability | Medium sized manufacturer with 50 staff, product and environmental blocks | around €8,000 to €25,000 a year |
| Business contents | Plant and stock worth €3 million | around €5,000 to €12,000 a year |
| Business interruption | Business interruption with an 18 month indemnity period | around €3,000 to €9,000 a year |
| Cyber insurance | Firm with a process control system, around €10 million turnover | around €3,000 to €8,000 a year |
For comparison: For a small blending plant, liability with environmental blocks costs about as much a year as a single tanker load of base chemical.
Guide figures excluding German insurance tax, as of September 2026, from our own quoting. There are hardly any published tariff examples for chemicals and pharma because almost every business is assessed individually. Recall cover is usually priced per mille of turnover. We obtain the exact quote for you.
Our suggestions: three packages
01
Blending plant
For: Small manufacturers and fillers with a few tanks and their own brand
- Business liability
- Business contents
- Business interruption
Together around €4,000 to €10,000 a year
Request this package02
Production
For: Manufacturers with reactors, a hazardous goods store and industrial customers
- Business liability
- Business contents
- Business interruption
- Machinery breakdown
- Cargo insurance
Together around €15,000 to €40,000 a year
Request this package03
Works
For: Medium sized firms with process control, a GmbH and exports
- Business liability
- Business contents
- Business interruption
- Machinery breakdown
- Cargo insurance
- Cyber insurance
- D&O insurance
- Business legal expenses
Together around €35,000 to €90,000 a year
Request this packageThe worst day at a chemical plant
Six events that happen at chemical and pharmaceutical firms, all put together on one Tuesday. Tap through and see which policy steps in.
Damage so far€1,308,000
-
A hose bursts during transfer. 800 litres of solvent run into the storm drain and on into the stream.
-
A customer reports that a batch of surface cleaner has damaged stainless steel worktops in 30 commercial kitchens.
-
The reactor's agitator breaks, the batch has to be disposed of and the reactor is out for three weeks.
-
The process control system reports unknown access, and production is shut down as a precaution.
-
The lorry carrying your goods crashes on the motorway. Damaged drums, recovery and disposal.
-
A fire in the warehouse destroys raw materials and finished goods. The plant stays closed until it is released.
Which package would you have had?
Illustrative amounts before any excess. Whether and how much is paid depends on the policy terms.
Practical tips from your broker
- Declare every installation holding substances hazardous to water individually in your environmental liability and keep the list up to date with every change.
- Add environmental damage insurance and check whether your own land and the groundwater beneath it are covered.
- Agree high limits for firefighting water, clearance and decontamination; after a chemical fire these costs are often higher than the property damage.
- Insure recall costs separately, especially if your products are sold in shops: retailers' flat fees per store add up fast.
- If you make medicines, agree the financial cover under Section 94 of the Medicines Act with the insurer and have it confirmed in writing.
- Include environmental criminal legal protection: after a leak, prosecutors often investigate management and shift supervisors.
Why NAMMERT for your business
We separate what often gets mixed up
Environmental liability, environmental damage and recall are three contracts with their own rules. We arrange them for your business and compare quotes from several insurers.
Claims knowledge at first hand
In boat insurance we settle claims ourselves, including oil spills in harbours. We know how insurers calculate after an environmental loss.
Business and management together
We align D&O, criminal legal protection and business policies so that both the company and the people in charge are protected.
A family business since 1989
You speak to people who know your policies, in English if you prefer. Free for you; the insurer pays our commission.
Questions and answers
Frequently asked
Is environmental liability compulsory for chemical firms?
There is no general statutory duty to insure. But under the Water Resources Act and the Environmental Liability Act you are liable even without fault, so in practice it is indispensable.
What is the difference between environmental liability and environmental damage cover?
Environmental liability pays claims by third parties, such as a neighbour. Environmental damage insurance pays for clean-up ordered by an authority under the Environmental Damage Act.
Do pharmaceutical manufacturers need special insurance?
Yes. Anyone placing medicines on the market must prove financial cover under Section 94 of the Medicines Act, usually through pharmaceutical liability insurance.
What does insurance cost for a small chemical firm?
A small blending plant usually pays €4,000 to €10,000 a year for liability with environmental blocks, contents and business interruption. Larger firms are calculated individually.
Does liability insurance pay for a recall?
No. Recall costs are a separate block. Liability only pays once the product has caused injury or damage to property.
Who pays after a workplace accident with hazardous substances?
BG RCI, the statutory accident insurer, pays for treatment, rehabilitation and pensions. Claims for damages against the employer are then largely excluded; group accident insurance can pay on top.
NAMMERT insurance broker
Request quotes for Chemicals and pharma
The recommended covers are already ticked. Change what does not fit; we obtain quotes and come back with a comparison. You can write in English.
Thank you, we have your request.
We will be in touch within one working day. If it is urgent: +49 3375 29 12 77.
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Official classification
This page covers the following classes of the German WZ 2025 (identical to NACE at four digits):
- 19.10 Kokerei
- 19.20 Herstellung von Mineralölerzeugnissen und von fossilen Brennstoffen
- 20.11 Herstellung von Industriegasen
- 20.12 Herstellung von Farbstoffen und Pigmenten
- 20.13 Herstellung von sonstigen anorganischen Grundstoffen und Chemikalien
- 20.14 Herstellung von sonstigen organischen Grundstoffen und Chemikalien
- 20.15 Herstellung von Düngemitteln und Stickstoffverbindungen
- 20.16 Herstellung von Kunststoffen in Primärformen
- 20.17 Herstellung von synthetischem Kautschuk in Primärformen
- 20.20 Herstellung von Schädlingsbekämpfungs-, Pflanzenschutz- und Desinfektionsmitteln
- 20.30 Herstellung von Anstrichmitteln, Druckfarben und Kitten
- 20.41 Herstellung von Seifen, Wasch-, Reinigungs- und Poliermitteln
- 20.42 Herstellung von Körperpflegemitteln und Duftstoffen
- 20.51 Herstellung von flüssigen Biokraftstoffen
- 20.59 Herstellung von sonstigen chemischen Erzeugnissen a. n. g.
- 20.60 Herstellung von Chemiefasern
- 21.10 Herstellung von pharmazeutischen Grundstoffen
- 21.20 Herstellung von pharmazeutischen Spezialitäten und sonstigen pharmazeutischen Erzeugnissen
Source: Federal Statistical Office of Germany (Destatis), WZ 2025. All business types
Boat or yacht? Here we are not the broker but the underwriting agency, with our own policies and our own claims handling.
Boat insuranceNAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker. Statutory disclosure (German) · Updated