Can you get business legal expenses insurance with no waiting period or backdated cover?
In short
Can you get backdated cover? No: in German business legal expenses insurance (Firmenrechtsschutz) a dispute whose first breach came before the policy started is never covered. With no waiting period you usually get damages, criminal and regulatory cover; employment, contract or lease disputes have a three month waiting period. If you switch without a gap from a previous policy, insurers often credit it.
Premiums for German business legal expenses insurance from published examples, so you can weigh the waiting period against the price. As of October 2026.
Example
Typical range
Sole trader, low risk job, basic form
from about EUR 100 a year
Tradesperson without staff, key modules
about EUR 250 a year
Plumbing firm, 5 staff, with employer and property cover
about EUR 490 to 1,304 a year
Usual waiting period per module
0 to 3 months, up to 6 months for some modules
Guide values as of October 2026 from publicly cited examples.
Waiting periods are set in your policy conditions and may differ;
we obtain the exact quote for you.
Worked example
Painting firm buys cover in March, customer refuses to pay in May
Cover starts on 1 March. The work was handed over on 20 February and the customer complained about defects at once. In May he refuses to pay the final invoice of EUR 8,000.
First breach (defect complaint)
20 February, before cover started
End of waiting period for contract cover
31 May
Cover for this dispute
none, the cause predates the policy
Same story, handover and complaint in July
covered, if contract cover is included
The first breach decides, not the day you sue. If you buy business legal cover before any dispute, the waiting period is behind you when it matters.
Why German business legal cover has a waiting period
The waiting period (Wartezeit) stops firms from buying business legal expenses insurance only when a dispute is already looming. It applies where conflicts build up slowly: dismissing an employee, a defects dispute with a customer, trouble with the landlord of your workshop.
The model conditions of the German insurers' association set three months. Areas where disputes arise suddenly are exempt: damages after an accident, criminal proceedings and fines.
Module
Usual waiting period
Reason
Damages cover (Schadenersatz)
none
damage happens suddenly
Criminal and regulatory offences
none
allegations cannot be planned
Employer cover (Arbeitsrecht)
three months
dismissals are foreseeable
Business contract cover
three months, sometimes longer
defect disputes build up
Commercial lease cover
three months
landlord disputes grow slowly
Tax court cover
three months
the basis often lies in earlier years
Prior disputes: the conflict that already exists
More important than the waiting period is the rule on prior disputes (Vorvertraglichkeit). A case is only covered if the first breach happened after cover started and after the waiting period ended. If your customer refused acceptance of the work before the policy began, the later lawsuit stays uninsured, even with business legal cover that has no waiting period.
With several breaches, the first one counts. A warning letter in February, a dismissal in June and a dispute over the reference in autumn are usually treated as one case. If the warning came before the start date, the whole chain is excluded.
Some policies ignore breaches that happened more than a year before cover began. Ask for this if old conflicts in your business could resurface.
Backdated cover: what German law says
The German Insurance Contract Act allows cover to start before the contract is signed (§ 2 (1) VVG). But if you already know when applying that the insured event has happened, the insurer does not have to pay (§ 2 (2) VVG). Backdating business legal expenses insurance therefore does not help with a dispute you know about.
For private individuals a few insurers sell instant help for existing disputes, usually limited to advice out of court. Business matters are excluded there. Genuine backdated business legal cover for a known dispute does not exist on the German market.
When the waiting period does not apply
If you switch without a gap from another business legal expenses policy with the same cover, many insurers credit the waiting period already served. This only applies to modules you had before; a newly added contract module starts its own waiting period.
Cancel the old policy only once the new one is confirmed, and disclose your previous insurance in the application.
What to do about a dispute that is already running
Once the dispute exists, new business legal expenses insurance cannot help. First check whether an existing policy applies: an old business legal policy, public liability insurance if someone claims against you, or legal advice through a trade association.
For undisputed invoices the court dunning procedure (Mahnverfahren) is cheap. For large claims, litigation funding may take on the cost risk in return for a share of the proceeds. Buy cover for future disputes anyway, and handle the current one separately.
Step by step
Check whether a conflict with an employee, customer or landlord is already brewing.
Disclose existing conflicts honestly; they are excluded anyway.
When switching, cancel the old policy only after the new one is confirmed.
Get credit for your previous policy confirmed in writing.
Note for each module from which date it applies.
Handle a running dispute separately: dunning procedure, association, litigation funding.
Checklist
Waiting period per module known
Previous policy seamless and credited
Separate waiting period for newly added modules noted
Rule on breaches older than one year checked
No conflicts concealed in the application
Cover bought before the first dismissal or big contract
Common mistakes
Buying business legal cover once a dismissal is already planned
Believing a backdated start date saves a known dispute
Cancelling the old policy before the new one is in place
Concealing an existing conflict in the application
Questions and answers
Frequently asked
Can I insure a dispute that is already running?
No.
A dispute whose first breach came before the start of cover is not insured,
even under a policy with no waiting period.
Which modules apply from day one?
Usually damages, criminal and regulatory offences, and disciplinary and professional proceedings.
How long is the waiting period?
Usually three months for employment, contract, lease and tax disputes.
Some policies set longer periods for contract cover.
Does the waiting period fall away when I switch?
Often yes, if you move without a gap from a policy with the same cover.
New modules still have one.
What counts as the start of a dispute?
The first actual or alleged breach of a legal duty,
such as a defect complaint or a warning letter, not the lawsuit.
Is there a waiting period for criminal defence?
Usually not.
The allegation must relate to an event after cover started.
