Business liability
General liability including product liability and, depending on customers, extended product liability for removal and installation costs, recall and financial loss; environmental liability belongs in it too.
Insurance broker / Business types / Manufacturing
Industrial insurance for manufacturers in Germany: property, business interruption, liability and more
A fire on the shop floor does not just destroy machines. It stops production for months while customers move elsewhere. That is why industrial insurance puts business interruption on a par with property cover, alongside liability with product liability, environmental cover, transit, D&O and cyber. This page explains how it works under German law for manufacturers run or owned by English speakers. To be honest: large industrial risks with high values are placed by industrial insurers and brokers who specialise in them, often with several insurers sharing the risk.
The question almost everyone asks first
Do I need a specialist industrial broker?
It depends on size and values. A manufacturer with one site and moderate values is well served by commercial packages, which we compare. Once you count as a large risk, run several plants, export to the USA or have fire prone production, industrial insurers underwrite individually, often with surveys by risk engineers and several insurers in a consortium. A broker with an industrial department is then usually the better choice, and we will tell you so.
What goes wrong in this trade
- 01
Fire in the plant
Dust extraction, swarf, solvents: a fire can destroy buildings, machines and stock in a single night.
- 02
Production stop
Replacing a special machine can take months. Wages, rent and loans keep running while customers switch suppliers.
- 03
Defective product
A part fails at your customer, who has to remove, test and recall. Only extended product liability pays these costs.
- 04
Environmental damage
A tank leaks and oil reaches the soil or groundwater. Clean up and neighbours' claims get expensive.
- 05
Cyber attack
Encrypted servers and frozen controls bring the shop floor to a halt, often with a ransom demand.
- 06
Directors' liability
Shareholders, insolvency administrators or authorities hold managing directors personally liable.
Compared with other trades, 1 low to 5 high.
The insurance you need
Essential
Commercial buildings
Fire, water, storm and natural hazards for halls and offices, the basis of industrial property cover.
Business contents
Machines, stock and equipment against fire, water, storm and burglary.
Business interruption
After property damage it replaces lost gross profit and running costs until production is back.
Strongly advised
Machinery breakdown
Covers operating errors, short circuits and material defects in production equipment, which fire cover does not.
Cargo insurance
Raw materials and finished goods in transit, as an annual policy for all shipments.
D&O insurance
Protects managing directors and board members against personal liability for management errors.
Cyber insurance
Business interruption after attacks, data recovery and data protection incidents.
Depends on the business
Trade credit insurance
Protects receivables from business customers if a major buyer becomes insolvent.
What it costs: example prices
Industrial insurance is not off the shelf. Property premiums are per mille of the sum insured, liability follows turnover and export share, and fire protection on site counts as much as the sector.
| Insurance | Example | Typical range |
|---|---|---|
| Business liability | Supplier with €10 million turnover, extended product liability, no USA exports | about €4,000 to €12,000 a year |
| Business contents | Industrial property for buildings and contents, €10 million sum insured, metalworking | about €8,000 to €25,000 a year |
| Business interruption | €3 million gross profit, twelve months indemnity period | about €3,000 to €10,000 a year |
| D&O insurance | GmbH with €20 million turnover, €5 million limit | about €3,000 to €8,000 a year |
| Cyber insurance | Manufacturer with €20 million turnover, €1 million limit | about €3,000 to €9,000 a year |
For comparison: A year of property cover for a mid sized plant often costs less than a single day of standstill.
Guide prices from our quoting practice, as of October 2026, excluding insurance tax.
Published tariffs for industrial risks hardly exist; fire protection, sector,
exports and claims history move the premium a lot.
Large risks are underwritten individually.
Sources of the price examples
Our suggestions: three packages
01
Small plant
For: Manufacturer with one site and up to about 20 employees
- Business liability
- Business contents
- Business interruption
Together about €4,000 to €15,000 a year
Request this package02
Mid sized
For: Manufacturer with own hall, exports within Europe and employed managing directors
- Business liability
- Commercial buildings
- Business contents
- Business interruption
- Machinery breakdown
- Cargo insurance
- D&O insurance
- Cyber insurance
Together about €20,000 to €80,000 a year
Request this package03
Large risk
For: Companies above the § 210 VVG thresholds, several plants or USA exports
- Business liability
- Commercial buildings
- Business contents
- Business interruption
- D&O insurance
- Trade credit insurance
Together individual, through industrial insurers and specialist brokers
Request this packageThe worst day at the plant
Six things that really happen to manufacturers, here all on one Monday. Click through and see who pays.
Damage so far€2,555,000
-
A smouldering fire in the extraction system spreads to the paint shop.
-
The paint line is down for four months and orders have to be outsourced.
-
A customer reports broken brackets from one batch and claims removal and installation costs.
-
The control unit of a press fails after a short circuit.
-
A container of finished goods is damaged on the way to the port.
-
Malware encrypts the server holding all production orders.
Which package would you have had?
Illustrative amounts before any excess.
What is paid depends on the policy terms.
Practical tips from your broker
- Set sums insured at replacement value and have them reviewed regularly; underinsurance reduces every claim proportionally.
- Choose the business interruption indemnity period by the delivery time of your key machine; twelve months is often too short.
- Check supply contracts for liability clauses and required limits before you sign.
- Declare exports to the USA and Canada; without disclosure, cover there is often excluded.
- Invest in fire protection: sprinklers, fire alarms and tidy halls noticeably lower the premium.
- Above the § 210 VVG thresholds, have policy wordings checked carefully, because statutory protections may be contracted out.
Why NAMMERT for your business
Honest assessment
We tell you whether commercial packages fit your business or whether an industrial broker with risk engineers is the better choice.
Comparison for mid sized firms
Norman Nammert compares several insurers as an insurance broker and lays out the wordings side by side, in English if you prefer.
Business and private in one place
Company policies, employee benefits and the owners' private policies with one contact.
Brokering since 1989
A family business with short lines. Our advice costs you nothing; the insurer pays our commission.
Frequently asked questions
Questions and answers
Which insurance is compulsory for manufacturers in Germany?
There is no general requirement.
Motor liability for vehicles and the Berufsgenossenschaft for employees are compulsory;
for plants listed in Annex 2 of the Environmental Liability Act,
§ 19 provides for financial security,
and the authority can prohibit operation if proof is missing.
What is a large risk?
Under § 210 VVG, property and liability insurance count as a large risk if the company exceeds two
of three thresholds: €6.6 million balance sheet total, €13.6 million turnover,
250 employees on average.
Transit insurance is always a large risk.
The protective rules of the VVG can then be contracted out.
Why does business interruption matter so much?
Because after a fire the standstill usually costs more than the physical damage.
The policy pays lost gross profit and running costs for the agreed period.
What does extended product liability cover?
Financial losses at your customer, such as removal and installation costs,
testing costs and damage from combining defective parts.
Recall costs need a separate module.
Can you handle a large industrial group?
For large risks with high limits, several sites or consortium cover,
we recommend a specialist industrial broker.
For mid sized manufacturers we are glad to compare.
What does industrial insurance cost?
For a small manufacturer the core lines start at a few thousand euros a year;
mid sized firms usually pay €20,000 to €80,000.
These are guide prices from our quoting practice.
NAMMERT insurance broker
Request quotes for Industrial company
The recommended covers are ticked.
Change what does not fit; we compare quotes, 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.
Related trades
Machinery and plant engineering
Does our general liability pay if our machine brings the customer's production to a halt?
Who pays if coolant or quenching oil leaks into the ground?
Is general liability with environmental liability enough?
Are my customers' injection moulds covered at my premises?
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