# Architects' liability insurance in Germany: what the chamber requires and what a project needs

> If you design or supervise building work in Germany, you are liable for errors that may surface years after handover, and often for the full loss even when the contractor built badly. Professional liability insurance for architects and engineers covers bodily injury, property damage and financial loss arising from your services. The federal states make it compulsory, but only at minimum limits that a mid-sized project can exhaust.

Quelle/Source: https://www.nammert.com/en/insurance-broker-architects-liability.php  
Updated: 2026-11-11

## Is professional liability insurance compulsory for architects in Germany?

Yes, but the rule is set by each federal state, not nationally. The duty sits in the state architects and engineers acts and in the rules of the chambers, and it mainly applies to anyone who plans for clients in their own name. Typical minimums are EUR 1.5 million for bodily injury and EUR 250,000 to 300,000 for property damage and financial loss per claim, and several states also require at least five years of run-off cover. Baden-Württemberg, for example, requires EUR 1.5 million and EUR 300,000 after its 2026 amendment. The act of the state where you are registered is the one that counts.

## At a glance

- **Compulsory?:** Yes under state law, mainly for planners practising in their own name
- **Typical minimum limits:** EUR 1.5 million bodily injury, EUR 250,000 to 300,000 other loss per claim
- **Annual aggregate:** at least two or three times the limit, depending on the state
- **Run-off cover:** at least five years after the policy ends in several states
- **Premium basis:** fee income, limits, type of work and deductible

## A state by state duty, checked by the chamber

Germany has no single national rule. Each state defines in its architects act who must insure and for how much. Hesse and North Rhine-Westphalia set EUR 1.5 million for bodily injury and EUR 250,000 for property damage and financial loss, Brandenburg and Baden-Württemberg EUR 1.5 million and EUR 300,000. The limit must also be available more than once a year: at least twice in most states, at least three times in Baden-Württemberg.

The chamber of architects (Architektenkammer) asks for a certificate from the insurer. Practising without cover can lead to disciplinary proceedings and a fine. If you qualified abroad and want to use the title Architekt in Germany, registration with the state chamber comes first, and the insurance certificate is part of what the chamber expects. Treat the statutory limits as a floor: EUR 250,000 does not go far once a basement car park has to be stripped and resealed.

## Joint and several liability: why the planner often pays

When a contractor builds defectively and the architect fails to spot it during site supervision, both are jointly and severally liable to the client. The client may claim the whole loss from either, and usually picks the one with insurance. If the contractor has gone insolvent in the meantime, the right of recourse against it is worth little.

Section 650t of the Civil Code (BGB), in force since 2018, softens this slightly: for a supervision error the planner may refuse payment until the client has given the contractor a deadline to put the defect right. Defect claims for buildings become time-barred five years after acceptance (section 634a BGB), and the period for the planner's services often starts later than the contractor's.

## Act committed trigger and run-off: the old policy answers

German architects' policies are normally written on an act committed basis (Verstoßprinzip), which differs from the claims made policies common in the UK and the US. The policy in force on the day of the error responds, with the limit it had then. A drawing error made eight years ago under a EUR 250,000 limit is covered for EUR 250,000, however good your current policy is.

Run-off cover (Nachhaftung) sets how long after the policy ends a loss from the insured period can still be notified. Several states require at least five years. For retirement, closing the practice and your heirs that is tight, because hidden defects can lead to claims later. Stronger wordings offer unlimited run-off when the policy ends because you stop practising.

## Project cover: when one job outgrows the annual policy

The annual policy covers all commissions with one limit. For a single large project that limit is often too low, and the client will write a higher figure into the appointment. There are two routes: a project policy (Objektversicherung) as a separate contract for that building only, or a project specific increase of the annual limit, known as an excess layer.

Either must be in place before design work starts, otherwise the first errors already fall under the old limits. The same applies to roles beyond the classic profile: lead consultant with sub-consultants, joint ventures, project management or health and safety coordination may be included, capped or subject to agreement, depending on the wording.

## What is covered

- Bodily injury, property damage and financial loss arising from design, tendering and site supervision
- Damage to the building itself caused by a design or supervision error
- Assessment of liability and defence of unfounded claims, including in court
- Work as an expert, energy consultant or health and safety coordinator, depending on the policy
- Lead consultant role and liability for appointed sub-consultants, if included
- Participation in joint ventures (ARGE), depending on the wording
- Employees and freelance staff acting for the practice
- Office liability for visitors and rented premises, usually as an extension
- Errors made before inception, if retroactive cover is agreed
- Losses notified after the policy ends, within the run-off period

## What is not covered

- Knowing breach of law, regulations or the client's instructions
- Your own fee claim and the cost of redoing your own design work
- Overrun of cost estimates and deadlines, excluded or capped in many wordings
- Guarantees and contractual penalties beyond statutory liability
- Acting as client, developer or building contractor
- Claims by relatives and by partners in your own practice, depending on the wording
- Services you are not authorised to provide, for example without the right to submit building applications
- Claims before courts in the US and Canada unless specifically agreed

## Who needs it

- Architects, interior and landscape architects and urban planners practising in their own name
- Consulting engineers, structural engineers and building services designers
- Planning companies such as a GmbH or a partnership, for which state law sets separate limits
- Employed architects who take on private commissions
- Foreign practices opening a German office or working on German sites

## Who does not need it

- Planners who work only as employees or civil servants without commissions of their own: the employer's cover applies

## What it costs

The premium follows fee income, limits, type of work and deductible. Published figures from providers start at roughly EUR 400 to 500 a year for small practices and run into the high four figures. These are marketing figures from individual companies, not a market average.

| Example | Typical range |
| --- | --- |
| Interior architecture practice, EUR 150,000 fee income, EUR 2 million limit, EUR 2,500 deductible | about EUR 1,760 a year (one provider's worked example) |

**What drives the premium:**

- Fee income of the previous year, the main rating factor
- Limits and annual aggregate
- Type of work: buildings, structures, building services, expert reports
- Share of site supervision in your commissions
- Level of deductible
- Claims history

_The figures come from published information of individual providers and are not a quote. Your premium is fixed once fee income, services and limits are known._

## The policy levels on the market

- **Statutory cover:** Exactly the limits of the state act with a twofold annual aggregate and five years of run-off. Satisfies the chamber, but carries small projects only.
- **Practice cover:** EUR 2 to 3 million for bodily injury and EUR 1 million or more for other loss, open professional profile, all HOAI service phases. The right frame for most practices in housing and commercial building.
- **Practice plus project cover:** A high annual policy with excess layers or separate project policies for large schemes, lead consultant and joint venture work, and unlimited run-off on retirement.

## How to recognise a good policy

| Criterion | Minimum standard | Strong policy | Why it matters |
| --- | --- | --- | --- |
| Limit for property damage and financial loss | state minimum, EUR 250,000 or 300,000 | EUR 1 million or more, sized to your largest commission | Nearly all design claims are property or financial loss, so this limit runs out first. |
| Annual aggregate | twice the limit | three times or more | Two claims from the same policy year can surface years apart and draw on the same aggregate. |
| Run-off cover | five years | unlimited on ceasing practice, including for heirs | Defect claims are time-barred five years after acceptance and are often raised late. |
| Professional profile | listed activities | open cover for the whole profile and all service phases | With a closed list, any new service such as energy consulting starts out uninsured. |
| Cost and deadline overrun | excluded | included, possibly with a sublimit | Clients claim when the cost calculation fails or the move-in date slips. |
| Lead consultant and sub-consultants | own services only | liability for sub-consultants included | A lead consultant answers to the client for the structural design it bought in. |
| Project specific increase | not available | excess layer or project policy on agreed terms | Large clients prescribe limits the annual policy does not offer. |
| Defence costs | count towards the limit | paid in addition to the limit | Construction litigation with court experts takes years and easily costs five figures. |

## Insurers on the German market

This is specialist business in Germany: part of the market sits with insurers focused on construction and the professions, part with specialty carriers sold through brokers. The list describes the German market and does not show who we work with.

- **VHV**: Hanover based insurer with a construction focus
- **HDI**: Talanx group, large book of professional clients
- **AXA**: German non-life company of the French AXA group
- **Allianz**: largest German non-life insurer, agents and brokers
- **R+V**: insurer of the cooperative banking group
- **Markel**: specialty insurer in Munich, brokers only
- **Zurich**: European company of the Zurich group, based in Frankfurt
- **ERGO**: non-life insurer of the Munich Re group, based in Düsseldorf

127 insurers supervised by BaFin, the German regulator, are licensed for this class of insurance. (Allgemeine Haftpflicht). Source: BaFin company database, 2026-09-18; EU insurers without a German office excluded.

## Typical claims and who pays

- **Faulty waterproofing floods basement** (often six figures): A classic design error and insured. The statutory limit for property damage, though, rarely pays for stripping out a whole basement level.
- **Build cost overshoots your estimate** (five to six figures, depending on the scheme): Many wordings exclude missed cost calculations. Stronger ones cover them, usually with a sublimit.
- **Contractor's defect missed on site** (up to the full repair): The supervision error is the core case. As planner and contractor are jointly liable, the claim often lands entirely on the insured practice.
- **Claim seven years after you retired** (open, often six figures): Five years of run-off have expired by then. Only unlimited run-off on ceasing practice protects retirees and their heirs.
- **You designed your own development** (the whole scheme): Acting as client or developer puts you on both sides. That role is excluded throughout this class of insurance.
- **Loss exceeds the annual limit** (everything above the limit): The planner pays the excess personally. The only remedy is an excess layer or project policy agreed before design began.

## Myth or truth

- „The insurance duty for architects is the same all over Germany." ✘ False, it is set by the federal states. Who must insure, for how much and with what run-off varies from chamber to chamber.
- „An architect can be liable for the whole loss although the contractor made the mistake." ✔ True, if the error should have been noticed during supervision. Both are then jointly and severally liable and the client chooses whom to pursue.
- „Cover ends completely when the policy ends." ✘ False, the insurer stays on risk for errors from the policy period within the run-off. Several states require at least five years.
- „A claims made policy from abroad is the German standard." ✘ False, German architects' policies normally respond on an act committed basis. The policy in force when the error was made is the one that pays.
- „The insurer also defends claims it considers unfounded." ✔ True, defence is part of every German liability policy. In construction disputes with court experts it is often the most valuable part.

## Common mistakes

- Insuring the statutory minimum and then designing a multi-million project on it
- Not declaring fee income and arguing about premium after a claim
- Acting as lead consultant without including the sub-consultants
- Assuming a UK or US claims made policy satisfies a German chamber
- Cancelling on retirement without checking the run-off
- Guaranteeing completion dates or cost ceilings in the appointment

## FAQ

### What minimum limits apply to architects in Germany?

Each state sets its own. Common figures are EUR 1.5 million for bodily injury and EUR 250,000 for property damage and financial loss per claim, for example in Hesse and North Rhine-Westphalia. Brandenburg and Baden-Württemberg require EUR 300,000 for the second figure. Companies may face higher limits.

### Is the statutory minimum enough?

For small conversions perhaps, for an apartment building rarely. Faulty waterproofing design, a fire protection defect or a structural error can cost far more than EUR 250,000 to put right. Anything above the limit is paid by the planner.

### Does my foreign professional indemnity policy work in Germany?

Do not assume so. The state acts set minimum limits, an annual aggregate and run-off cover, and the chamber wants the insurer to confirm them. German policies also normally respond on an act committed basis. A claims made policy from another market may not fit that, so check before you register or sign an appointment.

### What does act committed mean in practice?

The error is insured, not the later claim. What matters is which policy was in force on the day the duty was breached. Old policies therefore stay relevant, and a higher limit must be in place before design on a large project starts.

### How long must run-off cover last?

Several state acts require at least five years after the policy ends. That matches the usual limitation period but not every case, because time only starts to run on acceptance of the planner's services. If you close your practice, agree unlimited run-off.

### Why am I liable for the contractor's mistakes?

Because planner and contractor are jointly and severally liable to the client where a construction defect should have been noticed during supervision. The client may claim everything from one of them. Under section 650t BGB the client must first give the contractor a deadline to remedy the defect.

### What is a project policy?

A separate contract for one building project. Its limit is reserved for that scheme and is not eroded by other claims against the practice. It is taken out before design starts, often at the client's request.

### Are cost overruns insured?

In many wordings not, or only up to a sublimit. Some insurers treat a missed cost calculation or deadline as business risk. How your policy handles it is set out in the exclusions and should be clear before your first large commission.

### Do employed architects need their own policy?

Not for work in the employer's office, where the employer's policy applies. It is different once you design on your own account, even for friends and without a fee. Then you are personally liable and the state insurance duty may apply.

### How does a broker help with this cover?

By reading the exclusions before they become expensive. We compare your actual scope of services with the wording, keep track of earlier years' limits when you switch insurer and arrange project cover in time, in English where you prefer.

## Legal basis and sources

- [Insurance Contract Act (VVG, German)](https://www.gesetze-im-internet.de/vvg_2008/)
- [BaFin company database (licensed insurers)](https://portal.mvp.bafin.de/database/InstInfo/)

## Request quotes

We obtain quotes and come back with a comparison, free of charge. You can write in English. https://www.nammert.com/en/insurance-broker-architects-liability.php#anfrage

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