What insurance do self-employed tradespeople in Germany need?

In short

What insurance self-employed tradespeople in Germany need: health insurance is compulsory, and with an entry in the trades register (Handwerksrolle) so is the state pension. Next comes business liability, about EUR 200 to 450 a year for finishing trades. Then daily sickness benefit and disability cover, because without an employer every sick day costs you income.

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What insurance do self-employed tradespeople in Germany need?

What it costs

Indicative values for a small trade business, each insured separately.

Example	Typical range
Business liability, finishing trade, standard	about EUR 200 to 450 a year
Business liability, electrical firm with 4 staff, EUR 280,000 turnover	about EUR 400 to 620 a year
Business liability, construction, roofing, scaffolding	from about EUR 600, often over EUR 1,000 a year
Daily sickness benefit, age 35, EUR 150 a day from day 29	about EUR 76 to 150 a month
Disability cover, tiler, age 35, EUR 1,500 benefit	about EUR 191 a month
Statutory health insurance, minimum contribution with care	about EUR 270 to 290 a month

Indicative values as of October 2026 from published tariff examples; legal provisions checked.

The range of EUR 90 to 190 for disability cover in trades and the ranking of contents and tools

cover are indicative values from our quoting practice.

Your premium depends on trade, turnover, age and health; we obtain the exact quote.

Worked example

Master painter, 38, working with one journeyman

A lean set of cover for the first year, leaving out health and pension insurance, which are compulsory anyway.

Business liability, finishing trade	about EUR 300 a year
Daily sickness benefit EUR 120 from day 29	about EUR 60 to 120 a month
Basic abilities cover instead of BU, EUR 1,500 benefit	about EUR 70 to 90 a month
Trade association for the journeyman	by payroll and risk class

About EUR 1,900 to 2,800 a year for the three voluntary policies, plus the trade association contribution. That covers the risks that can end a small business.

What is compulsory for self-employed tradespeople

Everyone living in Germany must have health insurance, statutory or private (section 193 VVG). Trades add a special rule: if your business is entered in the trades register and you personally meet the requirements for it, you must pay into the state pension (section 2 SGB VI).

After 18 years of compulsory contributions you can apply for exemption (section 6 SGB VI). Whether that is wise depends on how you provide instead; with the exemption you also lose state cover for reduced earning capacity.

Business liability: the first voluntary policy

A spilled paint pot on parquet, water damage after an installation, a customer tripping over your cable: as the owner you are liable for such damage with your private assets. Private liability insurance normally excludes business activities.

For most trades business liability is not required by law. But many clients, main contractors and public tenders ask for proof. Look for cover for damage to the object you work on, key loss and water damage during installation. For individual trades we have separate business type pages on our website with the details.

Income during illness and disability

As a self employed person you get no continued pay. Statutory health insurance pays sick pay only if you elect it, and then only from week seven. Private daily sickness benefit (Krankentagegeld) fills the gap: EUR 150 a day from day 29 costs about EUR 76 to 150 a month.

Disability insurance (Berufsunfähigkeitsversicherung) is expensive for manual trades, because backs, knees and shoulders wear out early. If it is unaffordable, basic abilities or incapacity for work insurance are cheaper alternatives. When you do not need it: if your assets or your business would carry you to retirement without your own labour.

Order of priority

What could end your business comes first. What is merely annoying you can carry yourself or add later.

Priority	Insurance	Cost about
Compulsory	Health and long term care insurance	statutory from about EUR 270 a month
Compulsory with trades register entry	State pension insurance	income related
1	Business liability	finishing trades about EUR 200 to 450, construction from about EUR 600 a year
2	Daily sickness benefit	about EUR 76 to 150 a month for EUR 150 a day from day 29
3	Disability cover or an alternative	about EUR 90 to 190 a month in trades
4	Trade association accident cover for yourself	depending on risk class and insured sum
later	Contents and tools cover, business interruption	depending on the value of workshop and van

Employees, trade association and accidents

Your employees are insured against accidents at work and on the way to work through the trade association (Berufsgenossenschaft); you pay the contribution. For you as the owner this applies only if your trade association's statutes provide compulsory cover for owners (section 3 SGB VII). Otherwise you can insure yourself voluntarily (section 6 SGB VII).

Trade association cover pays only for accidents at work and on the way. Private accident insurance also covers leisure time, but does not replace disability cover, because most disabilities are caused by illness.

What you can usually skip for now

Electronics cover for a single measuring device or glass cover for a workshop without a shop window: you can usually pay such damage from savings, so these are items for later.

Instead check whether your van and tools are covered when they stay overnight on site or in the vehicle. Whether theft from the vehicle is covered and up to what amount depends on the policy wording; ask about it specifically.

Step by step

Check whether your trades register entry makes you liable for state pension contributions.
Ask your trade association whether owners are compulsorily insured.
Take out business liability before the first job.
Set daily sickness benefit to start when your savings run out.
Have disability cover or an alternative checked with an anonymous pre-enquiry.

Checklist

Business liability with damage to worked objects and key loss
Cover of at least EUR 3 million combined
Daily sickness benefit or statutory election
Protection of your working capacity, if needed via an alternative to BU
Tools and materials in the van insured overnight

Common mistakes

Relying on private liability insurance
Applying for pension exemption without replacing reduced earning capacity cover
Choosing daily benefit from day 43 when savings last only four weeks
Buying many small policies and leaving the big risks open

Questions and answers

Frequently asked

Is business liability compulsory for tradespeople?

For most trades not by law.

Clients and tenders often require it, and without it you are liable with your private assets.

Do master craftsmen have to pay into the state pension?

Yes, if you are in the trades register and personally meet the requirements.

After 18 years of contributions you can be exempted.

Am I covered by the trade association as the owner?

Only if its statutes provide for it.

Otherwise you can insure yourself voluntarily.

Why is disability cover so expensive for trades?

Manual jobs lead to disability more often.

A tiler pays about EUR 191 a month at 35 for EUR 1,500, an IT specialist about EUR 37.

How is this different for employed tradespeople?

Employees have continued pay, trade association cover and the business as a liability shield.

Self employed, you carry all of that yourself.

Do I need contents insurance for the workshop?

If machines, materials and tools together are worth more than you could replace from savings, yes.

For a small workshop this is often step four or five.

Sources

NAMMERT insurance broker

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