Skip to content

Home / Insurance broker / Business

Professional indemnity for intermediaries in Germany: meet the licence, close the gaps

Anyone who arranges insurance, investments or residential mortgages in Germany needs professional indemnity cover for financial loss to get the trade licence. In German it is called Vermögensschadenhaftpflicht, or VSH. It pays when a client loses money because of advice or arranging errors, and defends unfounded claims. The statutory minimum gets you registered; the quality lies in the activity wording, run-off cover and exclusions.

The question almost everyone asks first

Is professional indemnity compulsory for intermediaries in Germany?

Yes, for everyone who needs a licence under § 34d (insurance intermediaries and insurance advisers), § 34f (investment intermediaries), § 34h (fee-based investment advisers) or § 34i GewO (mortgage credit intermediaries). Without proof to the Chamber of Commerce (IHK) there is no licence and no register entry. Tied agents whose insurer accepts liability for them are exempt. For insurance intermediaries the minimum has been EUR 1,564,610 per claim since 9 October 2024.

Each licence comes with its own minimum sum

The amounts derive from EU law and rise every five years in line with the European consumer price index. For insurance intermediaries and advisers, Delegated Regulation (EU) 2024/896 set the minimum at EUR 1,564,610 per claim and EUR 2,315,610 for all claims in a year from 9 October 2024. Older policies with EUR 1,300,380 no longer meet the requirement.

Investment intermediaries and fee-based investment advisers need EUR 1,276,000 per claim and EUR 1,919,000 per year under § 9 FinVermV, whatever the scope of their licence. Mortgage credit intermediaries need EUR 460,000 and EUR 750,000 under § 10 ImmVermV. If you hold several licences, each needs matching proof, usually within one policy that lists all activities.

What the Chamber of Commerce checks, and what it does not

For the licence your insurer issues a confirmation of cover based on the IHK template, stating the minimum sums and the insured activity. Under group policies arranged through an association or a broker pool, the sums apply per insured person. If the policy ends, the insurer informs the IHK, and without new proof the licence is at risk.

The confirmation says nothing about run-off cover, exclusions or the deductible beyond the statutory part. Whether a policy covers advice on closed-end funds, occupational pensions or errors from a comparison tool only shows in the policy wording. That is where offers differ.

Breach, run-off and long limitation periods

Advice errors often surface years later: the disability cover that was never in place, or the fund that did not suit the client. Most German policies are triggered by the breach, meaning the date of the error, not the date of the claim. What matters is how long after the policy ends claims can still be reported, and whether prior acts cover catches unknown errors from before the start date.

This becomes critical when you switch insurers or retire. If you sell your client book or stop trading, agree run-off cover for former intermediaries. Otherwise you are uninsured for old advice while clients can still bring claims for years.

The new § 34k licence and the limits of cover

From 20 November 2026, § 34k GewO introduces a new licence for arranging consumer credit. Existing licences under § 34c expire no later than 19 November 2027. If you arrange consumer loans, check that your policy names this activity.

No intermediary policy pays for guaranteed returns, embezzled client money or knowing breaches of duty. In the compulsory part the insurer often cannot raise these defences against the injured client (§ 117 VVG, the German Insurance Contract Act), but it will then recover the payment from the intermediary.

What is covered

  • Financial loss suffered by clients through advice or arranging errors
  • Defence against unfounded claims, in court if necessary
  • Broker, multi-tied agent and insurance adviser activity, depending on the licence
  • Arranging investment funds and other investments, if included
  • Arranging residential mortgages, if included
  • Employees and freelancers in the insured activity
  • Errors in servicing client policies, such as missed updates or cancellations
  • Loss of or damage to files and documents, depending on the policy
  • Run-off cover after the policy ends or the business closes, depending on the policy

What is not covered

  • Knowing breaches of duty and intentional damage
  • Promises about returns, income or performance
  • Embezzlement, cash shortfalls and handling of client money
  • Activities without the required licence or registration
  • Fines, penalties and punitive damages
  • Your own or affiliated products and companies
  • Bodily injury and property damage, which need office liability cover
  • Claims under US or Canadian law unless agreed

Who needs it

  • Insurance brokers and multi-tied agents licensed under § 34d GewO
  • Fee-based insurance advisers
  • Investment intermediaries and fee-based investment advisers under § 34f and § 34h GewO
  • Mortgage credit intermediaries under § 34i GewO
  • Consumer credit intermediaries with the new § 34k GewO licence

Who does not need it

  • Tied agents whose insurer accepts liability for their activity do not need their own compulsory cover

Wheel of misfortune

Spin the wheel of bad luck

Six things that really happen. The wheel picks yours and shows who pays.

See all six cases
  1. Old disability cover cancelled too soon, lost benefit payments, easily six figures. Budget policy: pays, Strong policy: pays. On the broker's advice the client cancels the old policy before the new one is accepted. A classic advice error and the core of every intermediary policy.
  2. Contents cover not updated after move, reduction for underinsurance, often five figures. Budget policy: pays, Strong policy: pays. If the broker fails to adjust the sum after a move to a bigger home, the broker is liable for the shortfall. Servicing errors are covered.
  3. Fund does not fit risk profile, investment loss and lost interest, often five figures. Budget policy: pays in part, Strong policy: pays. Covered only if investment intermediation is part of the policy. A policy for § 34d alone does not cover fund advice.
  4. Fixed return promised, the gap to the promised return. Budget policy: does not pay, Strong policy: does not pay. Promises about income or performance are excluded in every wording. What is insured is the advice error, not the promise.
  5. Employee diverts client money, the embezzled amount. Budget policy: does not pay, Strong policy: pays in part. Embezzlement is excluded from liability cover. Some packages add own loss from employee dishonesty, otherwise you need crime insurance.
  6. Health data sent to wrong person, GDPR damages, usually four to five figures. Budget policy: pays in part, Strong policy: pays. Whether claims under Article 82 GDPR are covered differs between wordings. Strong policies name them expressly.

What it costs

The premium depends mainly on your activities and commission income. One German Chamber of Commerce gives EUR 800 to 1,200 a year for insurance brokers and EUR 500 to 1,200 for genuine multi-tied agents, each plus insurance premium tax. Investment and credit activities are priced as extra modules.

What drives the premium

  • Licences and activities, especially investments beyond regulated funds
  • Commission and fee income in the last year
  • Number of people giving advice
  • Sum insured above the statutory minimum and deductible
  • Run-off, prior acts and optional modules
  • Claims and notified circumstances in recent years

The figures come from a Chamber of Commerce publication and apply to simple policies. Your premium is only fixed in the quote we obtain based on your licences and income.

The policy levels on the market

01

Statutory minimum

Exactly the legal minimum for one licence, short run-off, narrow activity wording. Enough for the register, but leaves gaps when you take over or sell a client book.

02

Intermediary package

Sums above the minimum, several licences in one policy, employees and sub-agents included, longer run-off. The right approach for most broker firms.

03

Bespoke policy

High sums, reinstatement, full prior acts, employee dishonesty as own loss and data protection liability. For larger firms, pools and firms that handle claims themselves.

How to recognise a good policy

CriterionMinimum standardStrong policyWhy it matters
Sum insured statutory minimum for each licence well above it, with a separate annual aggregate per licence One error on a large pension or commercial policy can use up the statutory sum quickly.
Indexation to new minimums only on request automatic adjustment when the EU amounts rise Otherwise the policy stops meeting the requirement after the next increase.
Insured activities one licence only all licences, occupational pensions advice, policy servicing and ancillary legal services Anything not described is not insured, even if it is part of daily work.
Run-off cover a few years after the policy ends long run-off, also on retirement, sale of the business and death Clients often report advice errors years later.
Prior acts none unknown breaches before inception included Switching insurers must not leave old advice uninsured.
Employees and sub-agents employees included also freelancers and sub-agents, plus own loss from employee dishonesty Towards the client you are liable for errors made by your people.
Costs outside the limit defence costs eat into the sum insured defence costs in addition to the sum insured Long proceedings otherwise erode the amount needed for the loss.
Data protection and digital tools not addressed GDPR damages and errors from comparison tools included Intermediaries handle health data and rely on calculators every day.

Insurers on the German market

Professional indemnity for intermediaries is written by liability insurers and specialists, often also through framework agreements of associations and broker pools. The list shows insurers authorised for liability business in Germany, not our partners, and not every insurer covers every licence.

InsurerBackground
Markelspecialty insurer based in Munich, distributes only through brokers
HDIpart of the Talanx group, focus on commercial and professional clients
AllianzGerman property and liability carrier of the Allianz group
AXAcommercial business through agents and brokers
R+Vinsurer of the German cooperative banks
Haftpflichtkassemutual insurer specialising in liability
Gothaermutual group, sells through agents and brokers
ZurichFrankfurt-based unit of the Zurich group

Compare the wordings of all tariffs Intermediary PI cover 2 tariffs from 2 providers, as of 24 October 2026

From the BaFin register

127

127 insurers supervised by BaFin, the German regulator, are licensed for this class of insurance.

(Allgemeine Haftpflicht)

Show all 127 names from the register
  • ADAC Versicherung AG
  • ADLER Versicherung AG
  • AGILA Haustierversicherung Aktiengesellschaft
  • Allcura Versicherungs-Aktiengesellschaft
  • Allianz Direct Versicherungs-AG
  • Allianz Global Corporate & Specialty SE
  • Allianz Versicherungs-Aktiengesellschaft
  • Alte Leipziger Versicherung Aktiengesellschaft
  • Ambra Versicherung AG
  • AMMERLÄNDER VERSICHERUNG Versicherungsverein a.G. (VVaG)
  • andsafe Aktiengesellschaft
  • ARAG Allgemeine Versicherungs-Aktiengesellschaft
  • AXA Versicherung Aktiengesellschaft
  • BA die Bayerische Allgemeine Versicherung AG
  • Badischer Gemeinde-Versicherungs-Verband
  • Baloise Sachversicherung Aktiengesellschaft Deutschland
  • Barmenia Allgemeine Versicherungs-Aktiengesellschaft
  • BavariaDirekt Versicherung AG
  • Bayerische Hausbesitzer-Versicherungs-Gesellschaft a.G.
  • Bayerischer Versicherungsverband Versicherungsaktiengesellschaft
  • BD24 Berlin Direkt Versicherung AG
  • BGV-Versicherung Aktiengesellschaft
  • Concordia Versicherungs-Gesellschaft auf Gegenseitigkeit
  • Continentale Sachversicherung Aktiengesellschaft
  • Cosmos Versicherung Aktiengesellschaft
  • DA Deutsche Allgemeine Versicherung Aktiengesellschaft
  • DARAG Deutschland AG
  • Debeka Allgemeine Versicherung Aktiengesellschaft Sitz Koblenz am Rhein
  • Delvag Versicherungs-AG
  • DEVK Allgemeine Versicherungs-Aktiengesellschaft
  • DEVK Deutsche Eisenbahn Versicherung Sach- und HUK-Versicherungsverein a.G. Betriebliche…
  • DFV Deutsche Familienversicherung AG
  • Dialog Versicherung Aktiengesellschaft
  • Die Haftpflichtkasse VVaG
  • DOCURA VVaG
  • ERGO Direkt Versicherung Aktiengesellschaft
  • ERGO Reiseversicherung AG
  • ERGO Versicherung Aktiengesellschaft
  • Euro-Aviation Versicherungs-Aktiengesellschaft
  • EUROPA Versicherung Aktiengesellschaft
  • Fahrlehrerversicherung Verein auf Gegenseitigkeit
  • Feuersozietät Berlin Brandenburg Versicherung Aktiengesellschaft
  • GARANTA Versicherungs-Aktiengesellschaft
  • Gemeinnützige Haftpflichtversicherungsanstalt Kassel
  • Generali Deutschland Versicherung AG
  • Gothaer Allgemeine Versicherung Aktiengesellschaft
  • Gothaer Versicherungsbank VVaG
  • Great Lakes Insurance SE
  • GRUNDEIGENTÜMER-VERSICHERUNG Versicherungsverein auf Gegenseitigkeit
  • GVO Gegenseitigkeit Versicherung Oldenburg VVaG
  • GVV Direktversicherung AG
  • GVV-Kommunalversicherung, Versicherungsverein auf Gegenseitigkeit
  • Haftpflichtgemeinschaft Deutscher Nahverkehrs- und Versorgungsunternehmen Allgemein (HDNA) VVaG
  • Hamburger Feuerkasse Versicherungs-Aktiengesellschaft
  • HanseMerkur Allgemeine Versicherung AG
  • HanseMerkur Reiseversicherung AG
  • HDI Global SE
  • HDI Global Specialty SE
  • HDI Haftpflichtverband der Deutschen Industrie Versicherungsverein auf Gegenseitigkeit
  • HDI Versicherung AG
  • Helvetia Schweizerische Versicherungsgesellschaft AG Direktion für Deutschland
  • Helvetia Versicherungs-Aktiengesellschaft
  • HUK-COBURG Haftpflicht-Unterstützungs-Kasse kraftfahrender Beamter Deutschlands a.G. in Coburg
  • HUK-COBURG-Allgemeine Versicherung AG
  • HUK24 AG
  • Hübener Versicherungs-Aktiengesellschaft
  • IDEAL Versicherung AG
  • INTER Allgemeine Versicherung AG
  • Interlloyd Versicherungs-Aktiengesellschaft
  • InterRisk Versicherungs-AG Vienna Insurance Group.
  • ISSELHORSTER Versicherung V.a.G.
  • Itzehoer Versicherung/Brandgilde von 1691 Versicherungsverein auf Gegenseitigkeit
  • Janitos Versicherung Aktiengesellschaft
  • KRAVAG-LOGISTIC Versicherungs-Aktiengesellschaft
  • Landschaftliche Brandkasse Hannover
  • LBN Versicherungsverein a.G. (VVaG)
  • Lifestyle Protection AG
  • Lippische Landesbrandversicherung AG
  • Lucura Versicherungs AG
  • LVM Landwirtschaftlicher Versicherungsverein Münster a.G.
  • Mannheimer Versicherung Aktiengesellschaft
  • Markel Insurance SE
  • Mecklenburgische Versicherungs-Gesellschaft auf Gegenseitigkeit
  • MVK Versicherung VVaG
  • MÜNCHENER VEREIN Allgemeine Versicherungs-AG
  • Neodigital Versicherung AG
  • Newline Europe Versicherung AG
  • nexible Versicherung AG
  • NV-Versicherungen VVaG
  • NÜRNBERGER Allgemeine Versicherungs-Aktiengesellschaft
  • NÜRNBERGER BEAMTEN ALLGEMEINE VERSICHERUNG AKTIENGESELLSCHAFT
  • OKV - Ostdeutsche Kommunalversicherung auf Gegenseitigkeit
  • Ostangler Brandgilde, Versicherungsverein auf Gegenseitigkeit (VVaG)
  • Pallas Versicherung Aktiengesellschaft
  • Provinzial Nord Brandkasse Aktiengesellschaft
  • Provinzial Versicherung Aktiengesellschaft
  • PVAG Polizeiversicherungs-Aktiengesellschaft
  • R+V Allgemeine Versicherung Aktiengesellschaft
  • RheinLand Versicherungs Aktiengesellschaft
  • Rhion Versicherung Aktiengesellschaft
  • S DirektVersicherung Aktiengesellschaft
  • SAARLAND Feuerversicherung Aktiengesellschaft
  • SHB Allgemeine Versicherung VVaG
  • SIGNAL IDUNA Allgemeine Versicherung Aktiengesellschaft
  • Sparkassen-Versicherung Sachsen Allgemeine Versicherung Aktiengesellschaft
  • Stuttgarter Versicherung Aktiengesellschaft
  • SV SparkassenVersicherung Gebäudeversicherung Aktiengesellschaft
  • TRIAS Versicherung Aktiengesellschaft
  • Uelzener Allgemeine Versicherungs-Gesellschaft a.G.
  • Union Reiseversicherung Aktiengesellschaft
  • uniVersa Allgemeine Versicherung AG
  • Versicherer im Raum der Kirchen Sachversicherung AG
  • Versicherungskammer Bayern Versicherungsanstalt des öffentlichen Rechts
  • Versicherungsverband Deutscher Eisenbahnen-Versicherungsverein auf Gegenseitigkeit
  • Verti Versicherung AG
  • VHV Allgemeine Versicherung AG
  • VHV Vereinigte Hannoversche Versicherung a.G.
  • VOLKSWOHL-BUND SACHVERSICHERUNG AKTIENGESELLSCHAFT
  • VPV Allgemeine Versicherungs-AG
  • Waldenburger Versicherung Aktiengesellschaft
  • WGV-Versicherung AG
  • WWK Allgemeine Versicherung Aktiengesellschaft
  • Württembergische Gemeinde-Versicherung auf Gegenseitigkeit
  • Württembergische Versicherung Aktiengesellschaft
  • Würzburger Versicherungs-AG
  • Zurich Insurance Europe AG
  • Öffentliche Feuerversicherung Sachsen-Anhalt

Source: BaFin company database, 18 September 2026; EU insurers without a German office excluded.

Legal basis and sources

Products and add-ons

PI for insurance intermediaries

Compulsory cover under § 34d GewO for brokers, multi-tied agents and insurance advisers. The basis for every broker firm.

PI for investment intermediaries

Compulsory cover under § 34f or § 34h GewO, depending on the category for funds only or for other investments too. Often a module in the same policy.

PI for mortgage intermediaries

Compulsory cover under § 34i GewO for arranging home loans, with its own minimum sums.

Group policy through an association or pool

Framework contract with fixed terms and sums per insured person. Cheap and quick, but no room to negotiate exclusions.

Combined with office liability and crime cover

Adds bodily injury and property damage at the office and losses from employee dishonesty.

Myth or truth

True or false?

Five things people say about this insurance. Guess first, then see the answer.

The statutory minimum for insurance intermediaries never changes.

This is false.

False. The amounts follow inflation and are raised every five years, most recently on 9 October 2024 to EUR 1,564,610 per claim and EUR 2,315,610 per year.

Grossly negligent advice errors are still covered.

This is true.

True. What is excluded is a knowing breach of duty. Overlooking something or misjudging it remains insured.

My office liability policy also covers advice errors.

This is false.

False. Office liability covers bodily injury and property damage. Pure financial loss from advice and arranging is only covered by professional indemnity.

A tied agent can work without their own PI policy.

This is true.

True, if the insurer they arrange for accepts liability for them. They then need neither a licence nor their own compulsory proof of cover.

PI reimburses money an employee has stolen.

This is false.

False. Embezzlement and cash shortfalls are excluded. Crime or fidelity insurance covers that.

Common mistakes

  • Carrying on with the old minimum sums after 9 October 2024
  • Getting a new licence without adding the activity to the policy
  • Switching insurers and forgetting prior acts cover
  • Selling the client book or retiring without run-off cover
  • Not declaring sub-agents and freelancers
  • Admitting a client claim before the insurer has agreed

Frequently asked questions

Questions and answers

Frequently asked

What is the minimum sum for insurance brokers in Germany?

Since 9 October 2024 at least EUR 1,564,610 per claim and EUR 2,315,610 for all claims in a year.

The amounts apply to insurance intermediaries and advisers under § 34d GewO and are adjusted every

five years.

What do investment intermediaries need?

Under § 9 FinVermV at least EUR 1,276,000 per claim and EUR 1,919,000 per year,

whether the licence covers funds only or other investments too.

The same applies to fee-based investment advisers under § 34h GewO.

And mortgage credit intermediaries?

Under § 10 ImmVermV at least EUR 460,000 per claim and EUR 750,000 per year.

If you also arrange insurance, you additionally need the § 34d sums.

Do tied agents need their own policy?

Not for the licence, if the insurer they work for accepts unlimited liability for their activity.

If they also arrange products from other companies or investments, the position is different.

What happens when my policy ends?

The insurer informs the IHK, and without new proof your licence can be revoked.

Towards injured clients the end only takes effect after a delay (§ 117 VVG).

For errors made during the policy period, the agreed run-off cover applies.

Does PI pay if I promised a return?

No.

Promises about income or performance are excluded as a rule.

What is insured is faulty advice, not a promise the market does not keep.

Are my employees covered?

Employees in the insured activity usually are.

Freelancers and sub-agents only if the policy names them and they have been declared.

If they hold their own licence, they normally need their own proof of cover.

Do I have to report every possible error straight away?

Claims must be reported promptly.

Many policies also allow you to notify circumstances that could lead to a claim.

That secures cover, especially just before switching insurers.

Why use a broker for your own PI?

Because the differences lie in the activity wording, run-off and exclusions,

not in the statutory sum.

We set your licences and actual business against the policy terms, in English if you prefer,

and make sure prior acts cover leaves no gap when you switch.

NAMMERT insurance broker

Request quotes for Intermediary PI cover

We obtain quotes and come back with a comparison, free of charge.

You can write 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

Professional indemnity for insurance and finance intermediaries

For example current insurer, sub-agents, pensions advice, investments, consumer credit

4Your current policy
5How can we reach you?

Free of charge and without obligation. A person will get back to you.

Often goes with it

D&O insurance

D&O insurance

Can I be personally liable as managing director of a German GmbH?

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

Boat insurance

Updated