Business liability
As developer's liability it covers your liability as the builder for the site, neighbouring plots and passers by across all your projects.
Insurance broker / Business types / Property and finance
Insurance for developers, project developers and commercial builders in Germany
A developer (Bauträger) carries the risk of a builder, a seller and a coordinator all at once, and for years. The excavation puts the neighbouring house at risk, a storm knocks down the shell, and after handover buyers argue about defects for five years. This page shows which insurance covers which stage of a project.
The question almost everyone asks first
Aren't we covered by our contractors' insurance?
Only partly. A contractor's public liability covers damage they cause to third parties, not your own liability as the builder for the site, and not damage to the building itself. If the shell builder sets up the crane wrongly and the wall collapses, you need your contract works insurance; if a passer by is hurt at an unsecured excavation, you are liable as the builder alongside the contractor.
What goes wrong in this trade
- 01
Neighbours and excavation
Settlement cracks in the house next door from digging or dewatering, a crane swinging over someone else's roof: damage to neighbours is the classic claim in residential building.
- 02
Shell in a storm
A freshly built gable wall without a roof structure, a thunderstorm, a section of wall that collapses. Contract works insurance pays for rebuilding.
- 03
Fire on site
Roofers with torches, screed dryers, site power: fire in the shell is not included in contract works insurance and needs separate fire cover for the shell.
- 04
Theft of installed parts
Copper pipes, boilers, windows: things that are already fitted disappear at night just like tools.
- 05
Planning and coordination
A planning mistake or a wrong building specification leads buyers to cut the price or withdraw from the contract, without anything being physically damaged.
- 06
Disputes over defects
After handover you are liable for defects for five years. Surveyors and court cases are almost part of the business in this industry.
Compared with other trades, 1 low to 5 high.
The insurance you need
Essential
Contractors all risks
Contract works insurance pays for damage to the building under construction from storm, heavy rain, vandalism, theft of installed parts and construction errors until handover.
Commercial buildings
As fire cover for the shell it protects the unfinished building against fire and turns into the buyers' or owners' association's buildings insurance on completion.
Strongly advised
Professional indemnity
Covers financial loss from planning, building specifications and coordination, if you plan yourself or commission the plans and coordinate.
Business legal expenses
For disputes with buyers, contractors and authorities; many policies only cover construction law to a limited extent, so this must be clarified in advance.
Depends on the business
D&O insurance
For managing directors of a project GmbH, who can be personally liable for mistakes in financing and contracts.
Cyber insurance
For fake invoices and payment instructions that fraudsters use to divert stage payments.
What it costs: example prices
For individual projects you usually pay a one off premium per build, based on the construction cost and type of building. If you build continuously, you get an annual policy charged on your construction volume.
| Insurance | Example | Typical range |
|---|---|---|
| Business liability | Builder's liability for a house with 500,000 euros construction cost | about 350 to 450 euros one off |
| Business liability | Builder's liability for 800,000 euros construction cost | about 580 to 750 euros one off |
| Contractors all risks | Single building with 500,000 euros construction cost, 500 euros excess | about 400 to 700 euros one off |
| Contractors all risks | Block of flats with 3 million euros construction cost | about 2,500 to 5,500 euros for the construction period |
| Commercial buildings | Fire cover for the shell of a block of flats, 3 million euros rebuilding value | often 0 euros for up to 12 months if buildings insurance with the same insurer follows |
For comparison: Builder's liability and contract works cover for a detached house together cost about as much as a single installed living room window.
Guide prices excluding German insurance premium tax, as of September 2026. The single building figures come from published examples; the figures for larger projects are guide values from our own quoting experience. Annual policies are calculated on your construction volume.
Sources of the price examples
Our suggestions: three packages
01
Project
For: A single house or small project of a project GmbH
- Business liability
- Contractors all risks
- Commercial buildings
Together about 800 to 1,500 euros one off per detached house
Request this package02
Developer
For: Developer with several projects a year and in house planning
- Business liability
- Contractors all risks
- Commercial buildings
- Professional indemnity
- Business legal expenses
Together annual policy, usually from about 5,000 euros depending on construction volume
Request this package03
Project developer
For: Project developer with several companies and large volumes
- Business liability
- Contractors all risks
- Commercial buildings
- Professional indemnity
- Business legal expenses
- D&O insurance
- Cyber insurance
Together calculated individually, usually five figures a year
Request this packageThe worst day on the building site
Six things that really happen to developers, all packed into a single autumn day. Click through the day and see who pays.
Damage so far€338,000
-
Overnight, copper pipes and two heat pumps that had already been installed were stolen from the shell.
-
Settlement cracks appear in the house next door after the excavation. Surveyor, underpinning, repairs.
-
A cyclist trips over the unsecured foot of the site fence on the pavement.
-
The insulation catches fire during roof sealing and the roof structure burns out.
-
A buyer demands a price reduction because the building specification promised a larger terrace than planning permission allowed.
-
A severe storm pushes in a freshly built gable wall.
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
- Take out contract works and fire cover for the shell before breaking ground, not at the topping out ceremony.
- Choose at least 5 million euros for developer's liability, and more like 10 million for inner city projects with neighbouring buildings.
- Have a condition survey of the neighbouring buildings done before work starts. Later it decides which cracks are really new.
- Check whether theft of fixed installations and damage by unknown persons are included in your contract works insurance.
- Ask every trade for proof of public liability with a sufficient sum before they come on site.
- Always get telephone confirmation when a supplier changes bank details; invoice fraud hits developers particularly often.
Why NAMMERT for your business
We think in projects
Every build needs different sums and terms. As brokers we match liability, contract works and fire cover to each project and get quotes from several insurers.
We know large property claims
In boat insurance we handle claims ourselves, including total losses. After a fire in the shell, we know how to negotiate rebuilding and surveys with the insurer.
Handover without a gap
We make sure the fire cover for the shell passes seamlessly into the buildings insurance of the buyers or the owners' association, and we can arrange that cover too.
A family business since 1989
Projects run for years, and so do we. You have fixed contacts, and the insurer pays our commission.
Questions and answers
Frequently asked
Do developers need compulsory insurance?
No, there is no legal duty to insure. The MaBV protects buyers through staged payments or a bank guarantee. Without liability and contract works cover, the developer carries the full risk alone.
What is the difference between builder's liability and contract works insurance?
Liability pays when third parties suffer damage, such as neighbours or passers by. Contract works pays for damage to your own building until acceptance.
Is the shell insured against fire?
Not through contract works insurance. That is what fire cover for the shell is for, and many insurers provide it free for up to twelve months if buildings insurance follows.
Does insurance cover defects after handover?
No, putting right your own defects is not an insured loss. What is insured is consequential damage to other property and to people. Legal expenses cover helps in disputes, provided construction law is included.
What does insurance for a building project cost?
For a detached house with 500,000 euros construction cost, builder's liability and contract works together come to about 750 to 1,150 euros one off. Larger projects are priced on construction cost.
Who is liable if a contractor damages the house next door?
First the contractor, through their public liability. But as the builder you can be jointly liable, for example for lack of supervision. Then your developer's liability steps in.
NAMMERT insurance broker
Request quotes for Property developer
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.
Related trades
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Official classification
This page covers the following classes of the German WZ 2025 (identical to NACE at four digits):
- 68.11 Kauf und Verkauf von eigenen Grundstücken, Gebäuden und Wohnungen
- 68.12 Erschließung von Grundstücken; Bauträger
Source: Federal Statistical Office of Germany (Destatis), WZ 2025. All business types
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