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One or a few named machines at replacement value with a fixed deductible. Suits businesses built around one key asset.
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Machinery breakdown insurance in Germany: the cover your property policy leaves out
German business property insurance pays for fire, storm, burst pipes and burglary, not for a machine that breaks down on its own. Maschinenversicherung covers sudden and unforeseen damage to machines and plant, whatever the cause, unless it is excluded. If you run production, construction equipment or technical plant in Germany, this is usually the policy that decides whether a breakdown is an expense or a crisis.
The question almost everyone asks first
Isn't machinery already covered by my business contents insurance?
Only against the named perils in that policy, typically fire, water, storm and burglary. Most machine losses start inside the machine: a bearing seizes, an operator makes a mistake, a power surge kills the control unit. German contents policies exclude that, and machinery breakdown insurance exists to fill exactly this gap. If you come from the UK, think of it as engineering insurance; the logic is the same, the German wording is Maschinenversicherung.
Named perils versus all risks: why the gap exists
German commercial property policies are built on named perils. If the cause of a loss is not on the list, there is no cover. Machinery breakdown insurance works the other way round: it pays for any sudden, unforeseen physical damage and lists what it does not pay for. Operator error, short circuit, design and material defects and damage while moving mobile equipment are the typical claims.
Unforeseen has a precise meaning here. If you or your maintenance staff knew about a defect and kept running the machine, the resulting damage is not covered. Keeping maintenance logs is the simplest way to protect your position in a claim.
Replacement value and the underinsurance trap
The sum insured must be what a comparable new machine costs today, including shipping, installation and customs duty. Many businesses enter the original purchase price from their fixed asset register. After a few years of price increases that means underinsurance, and German insurers then reduce every claim in proportion, including small ones.
For larger sites a blanket policy with one total sum and automatic cover for new machines up to a limit is usually more practical than a list. You report the total once a year instead of every purchase.
Construction plant and mobile equipment
Excavators, loaders, forklifts and aerial platforms are insured under a separate machinery all risks cover based on the ABMG wording. Here theft, fire and accidents on site are the big items. For theft, insurers regularly set conditions such as immobilisers, GPS trackers or fenced compounds overnight, and a claim can fail if these were not met.
Plant registered for road use also needs German motor liability insurance. Machinery cover pays for damage to your own machine only, never for damage it causes to others.
The real cost is downtime
A repair can take weeks when parts come from abroad. Wages, lease payments and rent continue while output stops. Machinery breakdown insurance pays the repair and nothing else. Loss of gross profit after a covered breakdown needs Maschinen-Betriebsunterbrechungsversicherung, machinery business interruption cover with an agreed indemnity period. For bottleneck machines it often matters more than the property cover.
What is covered
- Operator error, clumsiness and negligence
- Design, material and workmanship defects
- Short circuit, overvoltage and induction
- Failure of control and safety devices
- Centrifugal bursting, overpressure and boiler water shortage
- Malicious damage and sabotage by third parties
- Overturning and collision of mobile equipment
- Theft of mobile equipment where agreed
- Clean-up, salvage and air freight for spare parts, depending on the policy
What is not covered
- Wear and tear and gradual deterioration
- Tools, moulds, dies and consumables such as oil
- Defects known when the policy started
- Losses covered by the manufacturer's warranty
- Fire and explosion at fixed plant unless included
- Loss of profit without separate business interruption cover
- Intentional damage by the policyholder
Who needs it
- Manufacturers whose output depends on a few key machines
- Construction and landscaping firms with their own equipment fleet
- Businesses with leased or financed machinery, where the contract requires cover
- Trades with expensive single machines such as joinery, metalwork or printing
- Operators of technical plant such as combined heat and power units or refrigeration
Who can do without
- Office businesses without significant machinery; electronic equipment insurance is usually the better fit
- Firms whose few machines are cheap enough to replace from cash flow
Wheel of misfortune
Spin the wheel of bad luck
Six things that really happen. The wheel picks yours and shows who pays.
Cost:
Budget policy
Strong policy
See all six cases
- New hire crashes the CNC spindle, roughly €10,000 to €60,000. Budget policy: pays, Strong policy: pays. Operator error is exactly what machinery breakdown insurance is designed for. You only carry the agreed deductible.
- Excavator vanishes from site overnight, five to six figures, depending on size. Budget policy: does not pay, Strong policy: pays. Theft of mobile plant is an extension, not a default. Where it is included, German insurers usually require GPS tracking, an immobiliser or a fenced compound.
- Spare part air-freighted from Asia, often €2,000 to €10,000 in extra freight. Budget policy: pays in part, Strong policy: pays. Basic cover pays the repair with standard shipping. Air freight, overtime and express charges need an extended policy with a sublimit.
- Ex-employee sabotages the line, anywhere from four to six figures. Budget policy: pays, Strong policy: pays. Malicious damage by third parties is part of the standard cover, and a former employee counts as a third party. Report it to the police as well.
- Worn bearings finally seize, often four to five figures. Budget policy: does not pay, Strong policy: does not pay. Gradual wear is excluded in every German policy. A bearing that fails after years of running is maintenance, not an insured event.
- Three weeks with no production, three weeks of gross profit. Budget policy: does not pay, Strong policy: does not pay. The policy pays to fix the machine, not for lost output. That needs separate machinery business interruption cover.
What it costs
Premiums are calculated as a rate per mille of the replacement value and vary widely by machine type. German insurance premiums also carry 19 percent insurance tax, which appears on the invoice on top of the net premium.
What drives the premium
- Machine type and industry
- Replacement value and age
- Fixed installation or changing sites
- Deductible
- Theft protection for mobile equipment
- Claims history
- Add-ons such as business interruption, fire or theft
There are no reliable published benchmarks for machinery premiums in Germany, since every quote is rated on the actual equipment. We therefore do not give ranges. Your premium is fixed only in the quote.
The policy levels on the market
02
Blanket policy
All machines at a location under one sum, new purchases covered automatically up to a limit, annual declaration. The usual choice for mid-sized firms.
03
Package with interruption
Property cover plus machinery business interruption, often with fire, theft and extra costs such as express freight included.
How to recognise a good policy
| Criterion | Minimum standard | Strong policy | Why it matters |
|---|---|---|---|
| Underinsurance | proportional reduction | waiver of underinsurance with index-linked sum | Otherwise an outdated list reduces every claim payment. |
| New machines | covered only once declared | automatic provision for additions | Commissioning and test runs are when new machines are most at risk. |
| Gross negligence | insurer may reduce payment | waiver up to a high limit | German law allows proportional reduction for gross negligence unless the policy waives it. |
| Extra costs | not covered | air freight, overtime and weekend work included | Faster repair usually saves more downtime than it costs. |
| Theft of mobile plant | strict security conditions | covered with clear, achievable conditions | Theft is one of the most frequent total losses on construction sites. |
| Foundations and building work | excluded | foundations and reinstatement of walls included | Large machines often cannot be removed without structural work. |
| Deductible | fixed per claim | choice of amount, no percentage deductible on theft | A percentage deductible on a stolen excavator can reach five figures. |
Insurers on the German market
Machinery breakdown cover belongs to the engineering lines and is written by the large German property insurers and some specialists. The differences lie in wordings and in which industries an insurer is willing to accept.
| Insurer | Background |
|---|---|
| Allianz | engineering lines for SMEs and trades, tied agents and brokers |
| AXA | commercial lines via agents and brokers |
| HDI | part of the Talanx group, SMEs and professionals |
| HDI Global | Talanx industrial arm for larger risks |
| Zurich | German operation of the Zurich group, commercial business via brokers |
| R+V | insurer of the German cooperative banks, large commercial book |
| VHV | broker-focused insurer with a construction industry focus |
| Helvetia | German company of the Swiss Helvetia group, engineering lines via brokers |
From the BaFin register
155
155 insurers supervised by BaFin, the German regulator, are licensed for this class of insurance. (Hagel-, Frost- und sonstige Sachschäden)
Show all 155 names from the register
- ACM Versicherung AG
- ADAC Autoversicherung AG
- ADAC Versicherung AG
- ADAC Zuhause Versicherung AG
- ADLER Versicherung AG
- 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
- Astra Versicherung AG
- 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.
- Bayerische Landesbrandversicherung Aktiengesellschaft
- Bayerischer Versicherungsverband Versicherungsaktiengesellschaft
- BD24 Berlin Direkt Versicherung AG
- Bergische Brandversicherung Allgemeine Feuerversicherung V.a.G.
- BGV-Versicherung Aktiengesellschaft
- CG Car-Garantie Versicherungs-Aktiengesellschaft
- Concordia Versicherungs-Gesellschaft auf Gegenseitigkeit
- CONSTANTIA Versicherungen a.G.
- 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 Sozialeinrichtung der Deutschen Bahn
- DFV Deutsche Familienversicherung AG
- Dialog Versicherung Aktiengesellschaft
- Die Haftpflichtkasse VVaG
- DOCURA VVaG
- Dolleruper Freie Brandgilde
- Domestic & General Insurance Europe AG
- ERGO Direkt Versicherung Aktiengesellschaft
- ERGO Reiseversicherung AG
- ERGO Versicherung Aktiengesellschaft
- EUROPA Versicherung Aktiengesellschaft
- EXTREMUS Versicherungs-Aktiengesellschaft
- Fahrlehrerversicherung Verein auf Gegenseitigkeit
- Feuer- und Einbruchschadenkasse der BBBank in Karlsruhe, Versicherungsverein auf Gegenseitigkeit
- Feuersozietät Berlin Brandenburg Versicherung Aktiengesellschaft
- GARANTA Versicherungs-Aktiengesellschaft
- Gartenbau-Versicherung VVaG
- Gebäudeversicherungsgilde für Föhr,Amrum und Halligen
- Generali Deutschland Versicherung AG
- GGG Kraftfahrzeug-Reparaturkosten-Versicherungs-Aktiengesellschaft
- 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
- Hagelgilde Versicherungsverein a.G., gegründet 1811
- Hamburger Beamten-Feuer-und Einbruchskasse
- Hamburger Feuerkasse Versicherungs-Aktiengesellschaft
- Hamburger Lehrer-Feuerkasse
- HanseMerkur Allgemeine Versicherung AG
- HanseMerkur Reiseversicherung AG
- Harsewinkeler Versicherung VaG
- 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
- Häger Versicherungsverein auf Gegenseitigkeit
- 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-ALLGEMEINE Versicherungs-Aktiengesellschaft
- KRAVAG-LOGISTIC Versicherungs-Aktiengesellschaft
- Landschaftliche Brandkasse Hannover
- LBN Versicherungsverein a.G. (VVaG)
- Lehrer-Feuerversicherungsverein a.G. für Schleswig-Holstein, Hamburg und Mecklenburg-Vorpommern
- 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
- Mercedes-Benz Versicherung AG
- MVK Versicherung VVaG
- MÜNCHENER VEREIN Allgemeine Versicherungs-AG
- NEH Neue Hildener Versicherung AG
- Neodigital Versicherung AG
- Neuendorfer Brand-Bau-Gilde
- Newline Europe Versicherung AG
- nexible Versicherung AG
- Nordhemmer Versicherungsverein auf Gegenseitigkeit
- NV-Versicherungen VVaG
- NÜRNBERGER Allgemeine Versicherungs-Aktiengesellschaft
- NÜRNBERGER BEAMTEN ALLGEMEINE VERSICHERUNG AKTIENGESELLSCHAFT
- OKV - Ostdeutsche Kommunalversicherung auf Gegenseitigkeit
- Ostangler Brandgilde, Versicherungsverein auf Gegenseitigkeit (VVaG)
- OSTBEVERNER Versicherungsverein auf Gegenseitigkeit (VVaG)
- Pallas Versicherung Aktiengesellschaft
- ProTect Versicherung AG
- Provinzial Nord Brandkasse Aktiengesellschaft
- Provinzial Versicherung Aktiengesellschaft
- PVAG Polizeiversicherungs-Aktiengesellschaft
- R+V Allgemeine Versicherung Aktiengesellschaft
- Real Garant Versicherung Aktiengesellschaft
- RheinLand Versicherungs Aktiengesellschaft
- Rhion Versicherung Aktiengesellschaft
- S DirektVersicherung Aktiengesellschaft
- SAARLAND Feuerversicherung Aktiengesellschaft
- Schleswiger Versicherungsverein auf Gegenseitigkeit
- SCHNEVERDINGER Versicherungsverein a.G.
- SHB Allgemeine Versicherung VVaG
- SIGNAL IDUNA Allgemeine Versicherung Aktiengesellschaft
- SIGNAL IDUNA Unfallversicherung a. G.
- 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
- Vereinigte Hagelversicherung VVaG
- Vereinigte Tierversicherung, Gesellschaft auf Gegenseitigkeit
- Versicherer im Raum der Kirchen Sachversicherung AG
- Versicherungsverband Deutscher Eisenbahnen-Versicherungsverein auf Gegenseitigkeit
- VHV Allgemeine Versicherung AG
- Volkswagen Versicherung Aktiengesellschaft
- VOLKSWOHL-BUND SACHVERSICHERUNG AKTIENGESELLSCHAFT
- VPV Allgemeine Versicherungs-AG
- Waldenburger Versicherung Aktiengesellschaft
- WERTGARANTIE SE
- 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, retrieved 18 September 2026. Insurers from other EU countries selling through a branch or without a German office are not included.
Legal basis and sources
Products and add-ons
Fixed machinery cover
For installed production plant, presses, compressors, refrigeration and energy systems, usually on AMB terms.
Mobile plant all risks
For construction machines, forklifts and platforms, including accident and optional theft, usually on ABMG terms.
Machinery business interruption
Pays loss of gross profit after a covered breakdown for the agreed indemnity period.
Erection all risks
Covers machines during installation and test operation, before the machinery policy takes over.
Electronic equipment insurance
For IT, control systems and communication technology. Overlaps with computer-controlled machines, so the policy should define which cover pays.
Myth or truth
True or false?
Five things people say about this insurance. Guess first, then see the answer.
Machinery insurance is compulsory for businesses in Germany.
This is false.
No. There is no legal duty to insure machines in Germany. In practice, leasing companies and banks financing the equipment usually make it a condition of the contract.
If a German employee wrecks a machine through carelessness, they usually pay little or nothing.
This is true.
True. German employment case law limits employee liability: nothing for slight negligence, a share for medium negligence. Good policy wordings also waive recourse against staff except for intent.
Tools and moulds are part of the machine, so they are covered too.
This is false.
No. Tools, moulds, dies and screens are replaced regularly and are excluded as standard. Expensive injection moulds can be added as a separate item for an extra premium.
Damage caused by a design flaw from the manufacturer can still be covered.
This is true.
True. Design, material and workmanship defects are core insured causes. While a warranty applies, though, the manufacturer has to pay first.
Machinery insurance only protects the machine while it is running.
This is false.
Wrong. Standard German wordings also cover the machine during cleaning, servicing, dismantling and reassembly at the insured location. Moving it to another site is a different matter.
Common mistakes
- Insuring book value instead of today's replacement cost
- Never updating the machinery schedule after the first year
- Covering the repair but not the downtime
- Ignoring theft conditions for site equipment
- Assuming UK or US style engineering inspection is included; in Germany it is usually a separate contract
Questions and answers
Frequently asked
Does machinery insurance pay if an employee operates the machine wrongly?
Yes. Operator error is one of the main reasons the cover exists. German law lets the insurer reduce payment for gross negligence, so check whether your policy waives this defence.
Is wear and tear covered?
No. Gradual wear is predictable and not an insured event. If a worn part breaks suddenly and damages other components, the damage to those other parts is normally covered.
How much does machinery breakdown insurance cost in Germany?
It is priced as a rate per mille of replacement value plus 19 percent insurance tax. Rates depend on machine type, industry, shifts and deductible, so a quote for your equipment is the only meaningful figure.
My leasing company requires insurance. What do I need?
Usually machinery breakdown cover at replacement value, with the lessor noted as loss payee. Read the lease: some contracts also require theft cover for mobile equipment or a maximum deductible.
Is lost production covered?
Not by the machinery policy itself. You need machinery business interruption cover, which pays ongoing costs and lost profit while the machine is out of action.
Is a stolen excavator covered?
Under mobile plant all risks with theft included, yes, provided the security conditions were met. Typical conditions are immobilisers, removed keys and locked compounds or tracking systems.
Can a foreign company insure machines located in Germany?
Yes, through a German policy or an international programme with a local German policy. Local policies make claims handling and German tax compliance easier; your group insurer may already have such a structure.
Can older machines still be insured?
Yes, and often that is when cover matters most, because the manufacturer's warranty has expired and spare parts are expensive. Some insurers pay actual value instead of replacement value above a certain age.
What should I do after a breakdown?
Report the loss immediately, stop using the machine and keep damaged parts. Agree with the insurer before repairs start whether a loss adjuster will inspect. Scrapping parts early makes the cause hard to prove.
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Often goes with it
Why do I need electronic equipment insurance if I have contents insurance?
What does business interruption insurance pay in Germany?
Is business contents insurance required in Germany?
Do I need my own contractors all risks policy if the client already has one?
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