Is an insurance broker in Germany liable for bad advice?
In short
Yes. An insurance broker in Germany is liable for bad advice and must pay damages (section 63 of the Insurance Contract Act, VVG), for example if a gap in cover is missed or the sum insured is set too low. Brokers must carry professional liability insurance of at least 1,564,610 euros per claim. There is no liability if you were advised correctly and chose otherwise.
What enforcing a claim for bad advice can cost you in Germany, and the broker's minimum cover.
Example
Typical range
Complaint to the insurance ombudsman
0 euros procedure fee, only your own postage
Initial consultation with a lawyer as a consumer, no fee agreement
at most 190 euros plus VAT
Legal advice as a consumer, no fee agreement
at most 250 euros plus VAT
Broker's minimum professional liability cover
1,564,610 euros per claim, 2,315,610 euros per year
Statutory caps and minimums, as of October 2026.
Court proceedings cost much more depending on the amount in dispute;
check whether your legal expenses insurance covers the dispute.
Worked example
Contents insurance set too low, simplified calculation
For a 90 square metre flat the broker recommends a sum insured of 30,000 euros without asking what the furniture and belongings are worth, and without an underinsurance waiver. After water damage of 20,000 euros it turns out the contents were worth 58,500 euros.
Sum insured versus value
30,000 to 58,500 euros, about 51 percent
Insurer pays
about 10,260 euros
Your shortfall
about 9,740 euros
Claim against the broker
possible if the broker never asked about the value
You can claim the shortfall from the broker as damages if the error lay in the advice. If you chose the low sum against documented advice, the broker is not liable.
What an insurance broker is liable for
A broker in Germany must ask about your wishes and needs, advise you and document the reasons for the advice (sections 60 and 61 VVG). If the broker breaches these duties and you suffer a loss, the broker must pay damages (section 63 VVG), unless the broker was not at fault.
Germany's Federal Court of Justice (BGH) expects advice tailored to your actual needs. A general hint to insure against all risks is not enough (BGH, judgment of 9 March 2016, I ZR 147/14).
Typical advice error
Possible consequence for you
Sum insured recommended too low
payout reduced for underinsurance
Important cover never mentioned, such as natural hazards (Elementarschaden)
the loss is not insured at all
Application questions not explained, prior illness missing
insurer withdraws, no cover
Gap when moving from one policy to another
loss falls into a period without cover
Self employment not asked about
private policy does not pay for business losses
Who must prove what
You have to show that the broker breached a duty and that you suffered a loss. But the BGH treats the broker as a trustee-like guardian of the client's interests (Sachwalter). Once an advice error is established, it is up to the broker to prove the loss would have happened even with correct advice (BGH, judgment of 22 May 1985, IVa ZR 190/83).
This is why the advice record (Beratungsdokumentation) matters for both sides. Keep the record you received when you took out the policy. If it is missing, that can count against the broker in a dispute.
When the broker is not liable
If the broker advised you correctly and you still chose less cover, the broker is not liable for the gap. The broker also does not have to repeat the advice again and again as long as your situation stays the same.
A waiver of advice also limits liability. It is only valid as a separate declaration that expressly warns you it may make damage claims against the broker harder (section 61(2) VVG). If you clearly declined further advice online, none is owed: the Higher Regional Court of Munich on 7 August 2026 (25 W 1080/26 e) found no duty to mention driver injury cover (Fahrerschutzversicherung) for a motorbike policy.
Why the broker's liability insurance matters to you
Every licensed insurance broker in Germany must carry professional liability insurance. Since 9 October 2024 it must cover at least 1,564,610 euros per claim and 2,315,610 euros for all claims in a year (Commission Delegated Regulation (EU) 2024/896). Your claim therefore does not depend on whether the broker personally has the money.
You can check a broker's licence in the German register of intermediaries. Norman Nammert is listed there as an insurance broker under section 34d(1) of the Trade Regulation Act (GewO), number D-C08Q-TOSD4-37.
What to do if you think the advice was wrong
Write to the broker first, stating the loss and the error you see, and ask the broker to report the case to their professional liability insurer. Many cases are settled this way without court.
If that fails, consumers can turn to the insurance ombudsman (Versicherungsombudsmann) free of charge. Its decision does not bind brokers, and the procedure does not pause the limitation period against brokers. For larger amounts an initial consultation with a lawyer makes sense; mind the three year deadline.
Step by step
Collect the advice record, the application and the insurer's letters.
Put a number on the loss: what would the insurer have paid with correct advice?
Write to the broker describing the error and ask for it to be reported to their liability insurer.
If refused, contact the insurance ombudsman or get legal advice.
Watch the limitation period: three years from the end of the year you knew everything.
Checklist
Advice record from the start of the policy
Loss documented with figures
Dated letter sent to the broker
Broker's entry in the register checked
Limitation date noted
Legal expenses insurance checked
Common mistakes
Signing a waiver of advice without reading it
Throwing away the advice record
Waiting for the ombudsman while the limitation period runs
Blaming the broker for a justified refusal by the insurer although the advice was right
Questions and answers
Frequently asked
Is the broker liable if the insurer refuses to pay?
Only if the refusal results from an advice error.
If the insurer rightly refuses and the advice was correct, the broker is not liable.
Can a broker exclude liability in the small print?
The statutory duties to consumers cannot be contracted away to your detriment (section 67 VVG).
A valid waiver of advice needs a separate declaration with a warning.
Does this apply to policies bought online?
Yes, comparison sites are intermediaries with advice duties too.
If you expressly declined advice online, a claim is hard to enforce.
Is a tied agent liable in the same way?
The duties in sections 60 to 63 VVG apply to all intermediaries.
With a tied agent, the insurer the agent works for is often liable as well.
How long do I have to make a claim?
Three years from the end of the year in which you learned of the loss and the error,
