Does a small business in Germany need contents insurance?
In short
Does a small business in Germany need contents insurance? It is not mandatory. You need it once you rent business premises or your fittings, tools and stock are worth more than about EUR 5,000 to 10,000. Small businesses often pay from about EUR 60 to 125 a year. If you only work from home with a laptop, you can usually do without.
For small firms with a low sum insured, the tariff's minimum premium usually applies.
Example
Typical range
Artists, therapists, ice cream cafés on average
about EUR 60 a year
Office business, published tariff, standard perils
at least EUR 125 net a year
Retailer, several insurers
about EUR 57 to 1,551 a year
Small studio with EUR 20,000 of contents
about EUR 100 to 200 a year
The first three values come from reference quotes (2024) and a published tariff (2021).
The studio value is a guide value from day-to-day quoting practice.
Your premium is only fixed in the quote.
Worked example
Beauty studio run as a small business
A beautician rents a room in a medical centre. A burst pipe upstairs soaks her treatment bed, devices and products.
Treatment bed and furniture (new value)
EUR 6,000
Devices
EUR 8,000
Products at purchase price
EUR 3,000
Clean-up and drying
EUR 1,000
With contents insurance and the right sum, about EUR 18,000 minus the deductible is paid. Without it she carries the loss alone, as home contents cover does not extend to the rented room.
Kleingewerbe is a tax and trade term, not an insurance term
Whether you are registered as a Kleingewerbe or as a merchant in the commercial register makes no difference to contents insurance. What matters is what your small business owns and what a fire or burglary would cost you.
A nail technician with a rented studio, tables, devices and products easily reaches EUR 20,000 of new value. A designer working from home with one computer may have EUR 3,000. The need is completely different.
When home contents insurance is enough
If you work in your own flat, many German home contents policies (Hausratversicherung) include work equipment and furniture used for your job or trade. Trade goods and sample collections are either excluded or only covered up to a small agreed limit, so a small business storing more stock at home needs separate contents insurance.
Tell your home contents insurer that you run a small business from the flat and ask for written confirmation of what is covered. Premises outside your home are never covered by home contents insurance.
Situation
What fits
Laptop and camera in a home office
home contents, electronic cover for use on the move
Online shop with stock in the basement
business contents insurance for the stock
Rented studio or shop
business contents insurance
Garage workshop with machines
business contents insurance
Services only at customers' sites
often no contents insurance needed
When a small business in Germany really needs it
Once you rent business premises, contents insurance is close to essential for a small business. Many landlords require it in the lease, and their building insurance covers neither your fittings nor your stock.
Even without a lease clause it pays off if a fire or burglary would shut your small business for weeks. Many small business policies include a Klein-BU that keeps paying rent and profit for a while.
When you do not need contents insurance
If you deliver your service at customers' sites, own little equipment and could replace it from savings, you do not need your own contents insurance. Business liability insurance (Betriebshaftpflicht) for damage you cause to others usually matters much more.
Step by step
Check where you work: at home, in your own premises or at customers' sites.
Add up the new value of fittings, devices and stock.
Read your lease for an insurance requirement.
If you work from home, ask your home contents insurer in writing.
With your own premises, request contents cover with Klein-BU.
Checklist
Business use of your flat reported to the home contents insurer
Stock and samples insured separately
Own premises covered by their own policy
Sum based on today's new prices
Business liability in place
Common mistakes
Assuming home contents cover includes stock in the basement
Running a rented studio without its own policy
Buying contents cover but forgetting business liability
Insuring items at what you paid years ago instead of today's price
Questions and answers
Frequently asked
Is insurance mandatory for a Kleingewerbe?
Not for contents.
Some professions must carry liability insurance, but contents cover is voluntary.
Does my home contents policy cover my home office?
Often for work equipment, if the insurer knows about it.
Usually not for trade goods.
Is it worth it with EUR 5,000 of equipment?
Only if you could not find EUR 5,000 straight away.
Otherwise the premium is high in relation.
Which comes first, contents or liability?
For most small firms business liability, because damage to others has no upper limit.
Contents cover comes next.
Can I start small and increase later?
Yes.
Report new equipment and more stock once the sum rises noticeably,
otherwise underinsurance applies.
What does advice cost?
Nothing.
Norman Nammert acts as an insurance broker and the insurer pays the commission.
