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Insurance for pawnshops and pawnbrokers in Germany

Pawnshops and pawnbrokers in Germany lend money against jewellery, watches, electronics or cars and keep the pledges until they are redeemed or auctioned. So every pawnshop holds other people's valuables. German law therefore requires the pledges to be insured. This page explains what is compulsory, what else to insure and what it costs.

Insurance for pawnshops in Germany

The question almost everyone asks first

Is it enough to insure the pledges for the amount I have lent?

No. § 8 of the Pawnbrokers Ordinance requires at least twice the loan amount, against fire, water damage, burglary and robbery. If you have €400,000 on loan, you need at least €800,000 of cover for the pledges. Also make sure you meet the insurer's security requirements for safe and alarm, otherwise a claim may be reduced.

What goes wrong in this trade

  1. 01

    Armed robbery

    Robbers during opening hours, staff in shock, safe and displays emptied.

  2. 02

    Burglary

    The strongroom is broken into at night, and you owe customers their pledges.

  3. 03

    Fire and water

    A fire or burst pipe damages watches, electronics and furs in storage.

  4. 04

    Underinsurance

    The loan book grows faster than the sum insured, leaving a gap after a loss.

  5. 05

    Stolen goods as pledges

    Police seize a pledge that turns out to be stolen, and the loan is lost.

  6. 06

    Customer data

    Pledge records, ID data and loans are stored digitally and attract attackers.

Risk radar
Liability 3Fire and water 5Theft 5Cyber 3Downtime 3Health 3

Compared with other trades, 1 low to 5 high.

The insurance you need

Essential

Business contents

Insures the pledges for at least twice the loan amount against fire, water, burglary and robbery, as § 8 of the Pawnbrokers Ordinance requires, plus your own fittings.

Strongly advised

Cargo insurance

Covers pledges on the way to the auctioneer, valuer or external storage.

Cyber insurance

Covers attacks on your loan management system and customer data.

Depends on the business

What it costs: example prices

Premiums depend mainly on the value of pledges, their type and your security systems. Gold and watches cost more than electronics; a certified safe lowers the premium.

InsuranceExampleTypical range
Business contentsPledges insured for €800,000, certified safe, monitored alarmabout €2,500 to €6,000 a year
Business contentsLarge pawnshop insured for €3 million including car pawnsabout €8,000 to €20,000 a year
Business liabilityPawnshop with three employeesabout €250 to €600 a year
Cyber insuranceDigital loan management, €250,000 coverabout €500 to €1,200 a year

For comparison: Insuring the pledges of a small pawnshop costs about as much a year as the interest on a handful of larger jewellery loans.

Guide figures from our own quoting work, October 2026, excluding German insurance premium tax.

The linked sources support the legal statements on this page, not the prices.

Sources of the price examples

Our suggestions: three packages

01

Compulsory cover

For: small pawnshop with jewellery and watches

  • Business contents
  • Business liability

Together about €2,800 to €6,600 a year

Request this package

02

Pawnshop

For: business with staff, auctions and digital records

  • Business contents
  • Business liability
  • Business interruption
  • Cyber insurance
  • Cargo insurance

Together about €5,000 to €12,000 a year

Request this package

03

Several branches

For: pawnbrokers with branches and car pawns

  • Business contents
  • Business liability
  • Business interruption
  • Cyber insurance
  • Cargo insurance
  • Group accident insurance

Together tailored, usually from about €15,000 a year

Request this package

The worst day in the pawnshop

Five things that really happen to pawnbrokers, here on a single day. Tap through and see who pays.

Damage so far€176,000
  1. The alarm reports a break in; the room with electronics pledges is empty.

    €35,000 · Paid by: Business contents

  2. A customer slips on the wet entrance step.

    €4,000 · Paid by: Business liability

  3. Two robbers threaten your employee and take gold jewellery from the safe.

    €120,000 · Paid by: Business contents

  4. Your employee is injured in the robbery and off work for weeks.

    €8,000 · Paid by: Group accident insurance

  5. The shop stays closed for a week after the robbery.

    €9,000 · Paid by: Business interruption

Which package would you have had?

Paid by insurance: €0
Out of your own pocket: €176,000

Illustrative amounts before any excess.

What is paid depends on the policy terms.

Practical tips from your broker

  1. Check every month that the sum insured is at least twice the amount on loan.
  2. Meet the insurer's security requirements for safe class, alarm and monitoring exactly and keep service records.
  3. Have pledges outside the safe, in displays or at the auctioneer, expressly included.
  4. Train staff on how to behave in a robbery and keep little cash at the counter.
  5. Store pledge records and customer data securely and separately from the till system.

Why NAMMERT for your business

We know the compulsory sum

We calculate the sum insured from your loan book and make sure all four perils of the Pawnbrokers Ordinance are covered.

Security requirements in view

Safe, alarm and monitoring decide premium and claims payments. We compare the requirements of different insurers.

Family run since 1989

Norman Nammert arranges your cover as an insurance broker, in English if you prefer. Our work is free for you; the insurer pays our commission.

Frequently asked questions

Questions and answers

Does a pawnshop in Germany have to insure the pledges?

Yes.

Under § 8 of the Pawnbrokers Ordinance, for at least twice the loan amount against fire,

water damage, burglary and robbery.

Do I need a licence?

Yes, a permit under § 34 of the Trade Regulation Act.

It is refused if you lack reliability or cannot show the necessary funds or securities.

What does insuring the pledges cost?

For a sum insured of €800,000 about €2,500 to €6,000 a year,

depending on pledge type and security, a guide figure excluding premium tax.

Are my employees covered in a robbery?

Employees are covered by statutory accident insurance under § 2 of Social Code Book VII.

Group accident insurance can pay extra benefits.

What if my loan book grows?

The sum insured must grow with it.

A regular adjustment or a reserve sum in the policy keeps you covered.

NAMMERT insurance broker

Request quotes for Pawnshop

The recommended covers are ticked.

Change what does not fit; we compare quotes, in English.

1Who is it for?
2Which insurance?

Choose as many as you like. For each one, the details an insurer needs for a quote appear below.

Personal

Business

3Details

Business liability insurance in Germany (Betriebshaftpflicht)

For example electrical installation in homes, café with outdoor seating, online shop for furniture

For example work at clients' sites, own products, exports to the US, parent company abroad

Business contents insurance in Germany (Inhaltsversicherung)

For example café with bakery, accounting firm, car repair shop

At purchase price, 0 if no stock

For example flood cover, customer property, tools in vehicles, loss of income

Business interruption insurance in Germany (Betriebsunterbrechungsversicherung)

For example metalworking with eight staff, restaurant, dental practice

Turnover minus materials and goods purchased, your tax adviser will know

For example key machinery, flood, long delivery times

Cargo and transport insurance in Germany

Only for hauliers and own-account transport

For example Incoterms, ADSp, packing, storage, previous claims

Cyber insurance for businesses in Germany

Rule of thumb: cost of three to four weeks of downtime plus recovery

4Your current policy
5How can we reach you?

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Boat or yacht? NAMMERT has its own cover concepts for boats, arranged by the same broker.

Boat insurance

Your 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