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What notice periods apply to business liability insurance?

In short

What notice periods apply? For business liability insurance in Germany usually three months before the end of the insurance year; the law allows one to three months. After a claim or a premium rise without better cover you may cancel within one month. Contracts running longer than three years can be cancelled at the end of the third year and every year after that.

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What notice periods apply to business liability insurance?

What it costs

Published guide values for the annual premium of a new contract in Germany, so you can judge a switch, 2026.

Example	Typical range
Office, consulting, administration	about EUR 60 to 120 a year
Retail, small shop	about EUR 120 to 250 a year
Trades, standard work	about EUR 200 to 450 a year
Construction, roofing, scaffolding	from about EUR 600 a year

Guide values from publicly quoted examples.

After several claims or a cancellation by the insurer, a new contract is often more expensive or offered only with a higher excess; that is a guide value from our quoting practice.

We obtain the exact quote for you.

Worked example

Switching on 1 January

An electrical firm took out its policy on 1 January with three months' notice. It wants to move to a policy that covers damage to the items it works on.

Get and accept the new quote	by mid September
Written confirmation, start 1 January 00:00	received
Cancellation received by the old insurer	by 30 September at the latest
Confirmation of the cancellation	keep it

The old policy ends on 31 December, the new one starts on 1 January. Not a single day without cover.

Ordinary cancellation

Most German policies run for one year and then renew automatically for another year. You can cancel at the end of the insurance year, which need not be the calendar year. The notice period is in your policy terms; the Insurance Contract Act (VVG) allows one to three months, equal for both sides.

With three months' notice and renewal on 1 January, your cancellation must reach the insurer by 30 September. The date of receipt counts, not the date you sent it.

If you signed for more than three years, for example to get a long term discount, you can still cancel at the end of the third year and every year after that, with three months' notice.

Reason	Notice	Legal basis
End of the insurance year	as agreed, usually three months	section 11 VVG
Contract over more than three years	three months to the end of the third year	section 11 VVG
Premium rise without better cover	one month from receipt of the notice	section 40 VVG
Claim accepted or rejected	one month, the insurer may cancel too	section 111 VVG
Business sold	buyer: one month from acquisition	sections 96, 102 VVG
Business closed	contract ends, report immediately	section 80 VVG

Special cancellation after a claim or a premium rise

Once the insurer has paid, accepted or rejected a claim, both you and the insurer may cancel within one month. You can leave immediately or at the end of the insurance year; if the insurer cancels, cover ends one month after you receive the notice. This is not rare: after several claims the cancellation often comes from the insurer.

If the insurer raises the premium without improving cover, you have one month from receipt of the notice. If the premium rises because your reported turnover or payroll has grown, that is usually not a premium increase in this sense and gives no special right to cancel.

Selling, closing or changing the legal form

If you sell or lease out the business, the business liability policy passes to the buyer. The buyer may cancel within one month of the acquisition. The seller then owes the premium for the current year.

If you close the business completely, the insured risk no longer exists and the contract ends. The insurer may charge the premium up to the moment it learns of the closure, so report it at once and in writing.

If your sole proprietorship becomes a GmbH, that is a new policyholder. Have the policy transferred before the GmbH starts work, otherwise it is liable without cover.

The gap when switching

Cover usually applies to events during the term of the contract. The new policy must therefore start on the day after the old one ends. Only cancel once the new insurer has confirmed cover in writing.

When you close a business, claims from earlier work can surface years later, such as a leaking pipe. Ask about run-off cover for dormant businesses before the contract ends. When you should not cancel: in the middle of an open claim that has not yet been settled.

Step by step

Find the renewal date and notice period on your policy schedule.
Get a new quote with the same or better cover.
Wait for written confirmation that the new policy starts the day after the old one ends.
Send the cancellation in text form with policy number and date.
Ask for a confirmation of receipt and keep it.

Checklist

Renewal date and notice period in your calendar
New policy starts without a gap
No open claim still being settled
Cancellation received in time and confirmed
Direct debit to the old insurer stopped after the end date
When closing: run-off cover sorted

Common mistakes

Cancelling before the new policy is confirmed
Counting the notice period from the calendar year instead of the insurance year
Treating a higher premium due to higher turnover as a special right to cancel
Not reporting a closure and paying on

Questions and answers

Frequently asked

Can I cancel business liability insurance monthly?

No. Even if you pay monthly, you cancel to the end of the insurance year. Only special cases such as a claim, a premium rise or closing the business allow an earlier exit.

Is an email enough?

Usually yes, if the terms require text form. Ask for a confirmation of receipt, because you may have to prove it arrived in time.

What happens to the premium if I close my business?

The contract ends, and the insurer may only charge the premium up to the moment it learns of the closure. You get any overpayment back pro rata.

Can the insurer cancel after a claim?

Yes, within one month of accepting or rejecting the claim, with one month's notice. It does happen, especially after several claims.

Do I have to have business liability insurance at all?

For most businesses in Germany it is voluntary. Some activities require it, such as security services. Check this before cancelling without a replacement.

Can I write my cancellation in English?

German insurers usually work in German. A short German letter with policy number, date and the words Kündigung zum Ablauf avoids misunderstandings.

Sources

NAMMERT insurance broker

Request a quote: Business liability

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1Who is it for?

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2Which insurance?

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3Details

Business liability insurance in Germany (Betriebshaftpflicht)

What exactly does your business do? * For example electrical installation in homes, café with outdoor seating, online shop for furniture Legal form * Annual net turnover in euros * Number of staff including owners * Preferred limit of indemnity * Liability claims in the last five years * Anything else we should know For example work at clients' sites, own products, exports to the US, parent company abroad

4Your current policy

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5How can we reach you?

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