Insurance for insolvency administrators and their firms in Germany
An insolvency administrator (Insolvenzverwalter) manages other people's money and is personally liable when something goes wrong. A supplier who ends up unpaid, a security right that was overlooked, a transfer to a fraudster: claims quickly reach six or seven figures. This page explains the liability under German law, the cover that matters for administrators and their firms, and what it costs.
Does my law firm's professional indemnity cover my work as an insolvency administrator?
Not automatically. The statutory minimum of 250,000 euros under section 51 BRAO is often too low for a case where the business keeps trading, and not every policy names the roles of administrator, custodian (Sachwalter) or trustee. Ask for written confirmation that these roles are insured and consider extra cover for large cases.
What goes wrong in this trade
01
The estate runs dry
You order supplies to keep the business trading, then the estate turns out to be insufficient. The supplier claims payment from you personally under section 61 InsO.
02
Third party rights overlooked
Goods under retention of title are sold with the business, or a security right is missed. The owner claims damages.
03
Deadlines and avoidance claims
A deadline for clawing back payments expires. Creditors lose money and look to the administrator.
04
Payment to a fraudster
A fake email announces new bank details, the trust account pays the wrong party. The money is gone.
05
Files and data
Administrator firms hold data on debtors, employees and creditors. A data breach means recovery costs, notifications and claims.
06
Running someone else's business
When the business keeps trading you are responsible for a company whose insurance you first have to check.
Financial loss liability is the core: it pays justified claims under sections 60 and 61 InsO and defends unjustified ones. For lawyers it is compulsory under section 51 BRAO.
Six things insolvency administrators really go through, all on one Tuesday. Tap through and see who pays.
Damage so far€158,700
A supplier to the trading business calls: his invoice for raw materials can no longer be paid in full from the estate.
€48,000 · Paid by: Professional indemnity
A bank complains that its collateral was sold without agreement and demands the proceeds.
€65,000 · Paid by: Professional indemnity
Accounts pay a supplier's invoice to a new account after a fake email. The money is gone.
€23,000 · Paid by: Cyber insurance
A creditor trips over a cable in the meeting room and breaks his wrist.
€7,500 · Paid by: Business liability
A water pipe bursts in the archive, shelves and the scanner stand in water.
€12,000 · Paid by: Business contents
The landlord demands a large service charge payment that you believe is wrong.
€3,200 · Paid by: Business legal expenses
Which package would you have had?
Paid by insurance: €0
Out of your own pocket: €158,700
Illustrative amounts before any excess.
What is paid depends on the policy terms.
Practical tips from your broker
Ask for written confirmation that work as administrator, custodian, trustee and provisional administrator is insured.
At the start of every large case, check whether your annual limit is enough and buy extra cover for that case if needed.
Watch the annual aggregate: several claims in one year often share the same limit.
When a business keeps trading, check early which of the debtor's policies are still running and whether premiums are paid.
Use call backs whenever bank details change; many cyber insurers ask about exactly that.
Think about run off cover: claims often arrive years after a case closes, even after you retire.
Why NAMMERT for your business
We read the terms
As an insurance broker, Norman Nammert compares several insurers and shows you where cover for administrator roles, extra limits and annual aggregates differ.
Firm and cases together
Basic cover, cover per case, cyber and office are kept in one file, so nothing is insured twice or not at all.
Family run since 1989
Our work is free for you; the insurer pays our commission. You speak to people who know your firm, in English or German.
Frequently asked questions
Questions and answers
What is an insolvency administrator personally liable for?
Under section 60 InsO for damage caused to any party by a culpable breach of duty.
Under section 61 InsO also when an estate debt the administrator took on cannot be paid in full
and this was foreseeable.
Which insurance is compulsory?
For lawyers, professional indemnity under section 51 BRAO with at least 250,000 euros per claim.
For administrator work this limit is often too low.
What does cover cost?
As a guide from our quoting work,
about 1,500 to 4,000 euros a year for a sole administrator with 1 million euros.
Firms with trading cases pay considerably more.
What is extra cover per case?
An additional limit for one specific case that sits above the firm's basic cover,
so the whole firm does not need a very high limit because of one large case.
Are custodians and trustees covered?
That depends on the policy.
Make sure every role is named, including provisional administration and custodianship in self
administration.
Does cyber insurance help with payment fraud?
Many policies offer a module for it,
often with its own limit and only if internal approval rules were followed.
We compare that for you.
NAMMERT insurance broker
Request quotes for Insolvency administrator
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.
