How much does D&O insurance cost for a GmbH managing director in Germany?
In short
For a small GmbH with about EUR 2 million turnover and a EUR 1 million limit, D&O insurance for the managing director usually costs EUR 750 to 1,100 a year before the 19 percent insurance tax. Very small companies pay from about EUR 310. How much the cover costs depends on the company, the GmbH normally pays, and one policy covers all managing directors in Germany.
Guide values from published tariff examples for GmbHs without US business, net premiums before 19 percent insurance tax.
Example
Typical range
Media GmbH, EUR 800,000 turnover, EUR 500,000 limit
about EUR 740 a year
Small GmbH, about EUR 2 million turnover, EUR 1 million limit
about EUR 750 to 1,100 a year
GmbH with EUR 5 to 10 million turnover, EUR 2.5 million limit
about EUR 1,800 to 2,600 a year
Personal D&O, one directorship, EUR 1 million limit
about EUR 1,100 a year including tax
Guide values as of October 2026 from publicly quoted 2025 tariff examples.
Your premium depends on the accounts, sector and wording and is fixed only in the quote;
insurers usually ask for the latest annual accounts.
We obtain the exact quote for you.
Worked example
Service GmbH in Berlin, EUR 2 million turnover, two managing directors
This is how the annual premium adds up when the GmbH buys one company policy for both directors.
Limit
EUR 1 million, shared by both
Net premium, packaged policy
about EUR 750 to 1,100
Insurance tax 19 percent
about EUR 140 to 210
Deductible
EUR 0
In total about EUR 890 to 1,310 a year, roughly EUR 75 to 110 a month, for both managing directors.
The premium is priced on the company, not on you
In Germany, D&O insurance (Managerhaftpflicht) for a GmbH managing director (Geschäftsführer) is almost always bought by the company. The insurer therefore looks at the GmbH: turnover, balance sheet total, equity, recent losses and sector. Whether one or three managing directors are listed in the commercial register rarely changes how much the D&O premium is.
Small, healthy companies get packaged policies with a short questionnaire. Above roughly EUR 10 to 25 million turnover, with losses, investors or US business, insurers price individually, and the D&O premium can be much higher.
Company
Limit
Net premium a year
Micro company under EUR 500,000 turnover
EUR 250,000
about EUR 310 to 450
Small GmbH, about EUR 2 million turnover
EUR 1 million
about EUR 750 to 1,100
Established GmbH, EUR 5 to 10 million turnover
EUR 2.5 million
about EUR 1,800 to 2,600
Mid-sized company, about EUR 25 million turnover
EUR 5 million
about EUR 3,500 to 6,000
Sector and US exposure change the D&O price
Two German companies with the same turnover can pay very different D&O premiums. Published examples put a consultancy with EUR 2 million turnover at about EUR 800 a year and a construction company of the same size at up to EUR 2,400, because insolvencies are more frequent in construction.
Business in the United States is expensive to insure, because lawsuits against directors are common there. A US share of 30 percent of turnover can raise the D&O premium of a small GmbH by half or more. If you have no US customers, say so clearly in the proposal form.
Choosing the limit for a German GmbH
For most small GmbHs, EUR 1 million is a sensible minimum. The limit is usually shared by all insured persons for a whole policy year, and lawyers' and experts' fees are deducted from it. A long defence against an insolvency administrator (Insolvenzverwalter) can use up a large part of it.
Raising the D&O limit from EUR 250,000 to EUR 1 million often costs only EUR 300 to 400 a year for a small company. Saving on the limit is rarely a good idea.
Personal D&O for directors from abroad
Some directors also buy a personal D&O policy that protects only them, for example when the German subsidiary has no policy of its own or when they hold several directorships. Published examples quote about EUR 1,100 a year including tax for a EUR 1 million limit and one directorship.
Personal D&O insurance costs more per head, but nobody else can use up its limit, and it stays in force if the GmbH cancels its policy or becomes insolvent. Directors of a German subsidiary covered only by a global group policy should check whether that policy really responds in Germany.
Step by step
Have the latest annual accounts, turnover and sector ready.
Set the limit, at least EUR 1 million for a small GmbH.
List subsidiaries, holdings and any US business.
Complete the proposal form fully and truthfully, including known disputes.
Compare quotes with the same limit, reporting period and cover for § 15b Insolvency Code claims.
Checklist
Limit of at least EUR 1 million for all directors together
Claims under § 15b Insolvency Code (payments after insolvency) expressly covered
Retroactive cover for earlier, unknown breaches
Extended reporting period of several years after the policy ends
Former managing directors remain insured
No right for the insurer to cancel after every claim
Common mistakes
Comparing only premiums and missing the extended reporting period
Choosing a limit so low that legal fees use it up
Cancelling the policy when the GmbH is sold or wound up
Leaving out a known dispute with shareholders in the proposal form
Questions and answers
Frequently asked
How much does D&O insurance cost per month?
For a small GmbH with a EUR 1 million limit, about EUR 75 to 110 a month including tax.
Most policies are paid annually.
Does the GmbH or the managing director pay?
Usually the GmbH, as policyholder.
For the company the premium is a business expense,
and for the director it is normally not taxable salary.
Does each extra managing director cost more?
Under a company policy usually not.
All insured persons share the limit, so it should be higher if there are several directors.
Does a one-person GmbH need D&O?
Often yes, because in insolvency the administrator enforces the company's claims against the sole
shareholder and director too.
Without staff, loans and suppliers the risk is lower.
When do you not need D&O?
A sole trader (Einzelunternehmer) does not,
because there is no company to which they are liable as a director.
For a dormant GmbH without business the benefit is small.
