Business liability
Pays injury, property and consequential damage to third parties, for example to neighbouring buildings and utility lines. Clients almost always require it.
Insurance broker / Business types / Construction and trades
Insurance for construction companies and general contractors in Germany
A construction company carries the risk for the building shell, the site, the machinery and often a whole crowd of subcontractors. As a general contractor in Germany you are also liable for things you do not control yourself. This page explains which insurance a construction company needs, what it costs and which liability no policy replaces.
The question almost everyone asks first
Is public liability enough, or do I also need contract works insurance?
Public liability pays for damage you cause to others, for example to the house next door or to a gas pipe. It does not pay for damage to your own works before acceptance. Under section 644 of the German Civil Code (BGB), the contractor bears the risk of accidental loss until the client accepts the work. If heavy rain brings down a freshly built gable wall, that is your loss. Contract works insurance covers it, ideally as an annual policy for all sites.
What goes wrong in this trade
- 01
Neighbours and utility lines
The excavator tears a power cable, underpinning cracks the house next door. These claims quickly reach six figures.
- 02
Damage to your own works
Storm, heavy rain, frost or fire hit the shell before acceptance. Until then, the risk is yours.
- 03
Theft from site
Copper, tools, plate compactors and mini excavators disappear overnight, and work stops.
- 04
Liability for subcontractors
A subcontractor fails to pay social security contributions. As general contractor you may have to pay instead.
- 05
Defects after handover
Damp basements or cracks show up years later. Disputes over remedial work are everyday business.
- 06
Accidents on site
Falls from scaffolding and injuries from machinery: construction is one of the most accident prone sectors.
- 07
Client insolvency
A developer gets into trouble, interim invoices stay unpaid, but your subcontractors still want their money.
Compared with other trades, 1 low to 5 high.
The insurance you need
Essential
Strongly advised
Contractors all risks
Protects your works until acceptance against storm, heavy rain, vandalism and construction faults; best as an annual policy for all sites.
Machinery breakdown
Covers excavators, cranes, compactors and small equipment against breakdown, operating errors and theft.
Fleet insurance
From three vehicles, a fleet policy bundles vans, trucks and registered machinery.
Business legal expenses
For disputes with clients, subcontractors and authorities; construction contract law is often a separate module.
Depends on the business
Trade credit insurance
Protects against large receivables going unpaid when a commercial client becomes insolvent.
Group accident insurance
Adds fixed sums to BG BAU cover for staff and also applies off the job.
D&O insurance
For managing directors of a construction GmbH who can be personally liable for breaches of duty.
What it costs: example prices
Premiums depend on turnover, the share of building, groundwork and crane work, payroll, the value of your plant and your claims history. General contractors with a high subcontractor share are rated differently from firms with their own crews.
| Insurance | Example | Typical range |
|---|---|---|
| Business liability | Construction company, €1 million turnover, €5 million limit | about €2,500 to €5,500 a year |
| Business liability | General contractor, €8 million turnover, €10 million limit | about €9,000 to €25,000 a year |
| Contractors all risks | Annual policy, €3 million annual construction output in housing | about €3,000 to €7,000 a year |
| Machinery breakdown | Plant with a replacement value of €400,000 | about €3,500 to €8,000 a year |
| Fleet insurance | Six vans and tippers, liability and partial cover | about €6,000 to €12,000 a year |
| Business legal expenses | Construction company with 20 staff, employment, contract and motoring legal expenses | about €1,200 to €2,500 a year |
For comparison: Public liability for a construction company with €1 million turnover costs about as much a year as one to two weeks of mobile crane hire.
All figures are guide values from our quoting work, excluding German insurance premium tax,
as of October 2026.
Hardly any tariffs for general contractors are published,
and ranges depend heavily on claims history.
The sources document the legal position.
We obtain the exact quote for you.
Our suggestions: three packages
01
Start
For: small construction company with its own crew, conversions and single family homes
- Business liability
- Contractors all risks
- Machinery breakdown
Together about €4,000 to €9,000 a year
Request this package02
Construction company
For: 10 to 40 staff, residential and commercial building
- Business liability
- Contractors all risks
- Machinery breakdown
- Fleet insurance
- Business legal expenses
Together about €15,000 to €40,000 a year
Request this package03
General contractor
For: turnkey construction with many subcontractors and large clients
- Business liability
- Contractors all risks
- Machinery breakdown
- Fleet insurance
- Business legal expenses
- Trade credit insurance
- D&O insurance
- Group accident insurance
Together individual, usually from about €40,000 a year
Request this packageThe worst day on site
Six claims construction companies really face, all on one Thursday on a site for a block of flats. Tap through and see who pays.
Damage so far€156,500
-
The excavator tears through a medium voltage cable. Half the neighbourhood loses power, and the network operator bills repair and consequential costs.
-
Underpinning causes cracks in the facade of the house next door.
-
The police report that a plate compactor, a laser level and a mini excavator were stolen overnight.
-
Heavy rain floods the excavation and the fresh basement wall collapses.
-
A tipper truck damages a parked car while manoeuvring.
-
The client cuts the final invoice over alleged defects. A surveyor and a lawyer are needed.
Which package would you have had?
Illustrative amounts before any excess.
What is paid depends on the policy terms.
Practical tips from your broker
- Take out contract works insurance as an annual policy charged on annual output. That way no site is forgotten.
- Check the public liability limits for damage to utility lines, underpinning and damage to worked on property; these are the expensive modules.
- Ask subcontractors for proof of prequalification. It removes the guarantor liability for their social security contributions under section 28e(3b) SGB IV.
- Check whether your liability policy includes your liability for subcontractors and whether it requires them to have their own cover.
- Secure machinery and materials overnight. Many plant policies require specific security measures for theft cover.
- If you work on site yourself, register voluntarily with BG BAU. As an owner you are not covered by law.
Why NAMMERT for your business
We compare construction insurers
Not every insurer writes general contractors with a high subcontractor share. As an insurance broker we approach those that do and set limits and exclusions side by side.
Liability and contract works without a gap
Where liability ends, contract works must begin. We match both policies instead of buying them separately.
Business, fleet and private in one place
Sites, vehicles, management liability and your own pension are handled together by Norman Nammert as your insurance broker.
Family business, placing cover since 1989
Many construction firms are family businesses like ours. Our work is free for you; the insurer pays our commission. We speak English and German.
Frequently asked questions
Questions and answers
Is public liability compulsory for construction companies in Germany?
Not by law.
Public and private clients almost always require it in the construction contract,
often with set minimum limits.
What does insurance for a construction company cost?
Public liability at about €1 million turnover usually costs €2,500 to €5,500 a year,
an annual contract works policy for €3 million output €3,000 to €7,000.
These are guide values from our quoting work.
Am I liable for my subcontractors as general contractor?
For their social security contributions, yes,
once the total value of construction work on the building reaches €275,000,
like a guarantor (section 28e(3a) SGB IV).
The liability falls away if you prove the subcontractor's suitability through prequalification.
Am I insured with BG BAU as the owner?
Your employees are compulsorily insured.
You as owner are not covered by law, but you can take out voluntary cover.
Who insures the building during construction?
Until acceptance the risk lies with the contractor under section 644 BGB.
Contract works insurance can be taken out by the client or the contractor;
the contract should say clearly who does it.
Is damage caused by my subcontractors in my liability policy?
Your own liability for subcontractors you hire is included in many construction tariffs.
Subcontractors still need their own liability cover; ask for proof.
NAMMERT insurance broker
Request quotes for Construction company
The recommended covers are ticked.
Change what does not fit; we compare quotes, in English.
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Who pays if the house next door cracks while we dig the foundation pit?
Who pays if we hit a power cable while digging and an industrial estate loses power?
Aren't we covered by our contractors' insurance?
Am I liable if another tradesman falls from the scaffold?
Boat or yacht? NAMMERT has its own cover concepts for boats, arranged by the same broker.
Boat insuranceYour broker: Norman Nammert, trading as NAMMERT.
Insurance broker licensed under section 34d(1) of the German Trade Regulation Act.
Broker register no. D-C08Q-TOSD4-37.
NAMMERT Assekuradeur GmbH is a separate company.
It does not arrange your contract.
Statutory disclosure (German) · Updated