# Insurance for demolition, strip-out and earthworks in Germany

> Demolition means working against the structure, right next to houses that are meant to stay standing. Vibration, dust, asbestos and heavy machinery make demolition one of the most expensive risks insurers take on in the building trades. This page explains what your firm needs, what it costs and where policies often have gaps.

Quelle/Source: https://www.nammert.com/en/business-insurance-demolition.php  
Updated: 2026-09-18

## Will my liability policy pay if the neighbour's gable wall cracks during demolition?

Only if your policy expressly includes demolition and pulling-down work as well as vibration damage. Many standard policies for building trades exclude or heavily restrict exactly these activities because they are expensive. Insurers also often require a safety distance or a pre-demolition condition survey. Compare your policy with the job before the excavator arrives.

## At a glance

- **Compulsory:** No statutory duty to insure the business; motor liability for lorries and registered construction machinery; asbestos work requires authorisation and proof of expertise, but no insurance
- **Biggest risk:** Damage to neighbouring buildings from vibration and collapse, and environmental damage from hazardous substances
- **Basic cover from:** about €1,400 a year for the public liability of a small demolition firm
- **Statutory accident insurer:** BG BAU, the Berufsgenossenschaft for the construction industry; membership is compulsory from your first employee
- **Often forgotten:** Environmental damage to soil and groundwater: environmental liability and environmental damage cover must be expressly included
- **WZ 2025 / NACE:** 43.11 Abbrucharbeiten, 43.12 Vorbereitende Baustellenarbeiten, 43.13 Test- und Suchbohrung, 43.50 Spezialisierte Bautätigkeiten im Tiefbau

## What goes wrong in this trade

- **Vibration and collapse:** Demolishing next to standing buildings causes cracks; in the worst case, walls fall uncontrolled onto neighbouring plots.
- **Asbestos and hazardous substances:** Undetected asbestos sheets, tar-containing roofing felt or oil in the ground: contaminating neighbouring land and groundwater is expensive and hard to insure.
- **Dust on cars and facades:** Demolition dust drifts across whole streets. Cleaning cars, windows and solar panels adds up.
- **Live services in old buildings:** Gas, power or water lines that were not disconnected in the building lead to explosions, fires and outages.
- **Heavy machinery:** Demolition excavators, shears and crushers are expensive, get damaged or are stolen from the site at night.
- **People in the danger zone:** Onlookers, workers from other firms or your own staff are hit by falling debris.

**Risk radar** (Compared with other trades, 1 low to 5 high.): Liability 5, Fire and water 3, Theft 4, Cyber 1, Downtime 4, Health 5

## The insurance you need

- **Business liability** (Essential): Pays for damage to neighbours, vibration damage and damage to underground lines, if demolition, pulling down and blasting are expressly insured and environmental liability and environmental damage are included. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Machinery breakdown** (Essential): Demolition excavators, attachments and crushers are the firm's capital and must be insured against breakage, overturning and theft. https://www.nammert.com/en/insurance-broker-machinery-breakdown.php
- **Fleet insurance** (Strongly advised): Tippers, low loaders and skip lorries under one fleet policy, with comprehensive cover for the expensive vehicles. https://www.nammert.com/en/insurance-broker-fleet-insurance.php
- **Business interruption** (Strongly advised): If your only demolition excavator breaks down, sites stand still; machinery business interruption pays for hired equipment and lost income. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Business contents** (Strongly advised): Replaces the workshop, store and small equipment in the yard after fire and burglary. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Group accident insurance** (Strongly advised): Demolition has a high accident rate; group accident insurance pays on top of the Berufsgenossenschaft. https://www.nammert.com/en/insurance-broker-group-accident.php
- **Business legal expenses** (Depends on the business): Business legal expenses cover for disputes with neighbours, authorities and clients about damage, conditions and disposal costs. https://www.nammert.com/en/insurance-broker-business-legal-expenses.php

## What it costs: example prices

Demolition firms are among the most expensive risks in construction. Even with a small turnover, liability premiums run into four figures, and not every insurer writes demolition at all.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business liability | €50,000 turnover, €3 to €5 million cover, €250 excess | about €1,400 to €3,650 a year |
| Business liability | €200,000 turnover, €3 to €5 million cover | about €1,550 to €3,900 a year |
| Business liability | €500,000 turnover, €3 to €5 million cover | about €2,600 to €7,900 a year |
| Machinery breakdown | Demolition excavator with attachments worth €250,000 | about €2,500 to €6,000 a year |

For comparison: Liability insurance for a small demolition firm costs roughly as much per year as demolishing a precast concrete garage including disposal.

_Guide prices excluding German insurance premium tax, as of September 2026. Liability comes from published tariff comparisons; machinery is a guide value from our quoting practice. Asbestos, blasting and hazardous substance work change the premium considerably. We obtain the exact quote for you._

- [betriebshaftpflicht24.de: Betriebshaftpflicht Abbruchbetrieb](https://www.betriebshaftpflicht24.de/betriebshaftpflicht-abbruchbetrieb.html)

## Our suggestions: three packages

- **Start** (small firm, interior strip-out and dismantling): Business liability, Machinery breakdown. Together: about €2,000 to €5,000 a year
- **Demolition firm** (five to fifteen employees, excavators and own lorries): Business liability, Machinery breakdown, Fleet insurance, Business interruption, Business contents. Together: about €8,000 to €20,000 a year excluding the fleet
- **All round** (demolition with hazardous material removal, crusher and a larger fleet): Business liability, Machinery breakdown, Fleet insurance, Business interruption, Business contents, Group accident insurance, Business legal expenses. Together: about €18,000 to €45,000 a year excluding the fleet

## The worst day on a demolition job

Six claims as demolition firms really experience them, all on a single Tuesday. Go through the day and see who pays.

- 07:00: Overnight, the hydraulic breaker was removed from the parked excavator and stolen. (€24,000, Paid by: Machinery breakdown)
- 09:25: While pulling down the warehouse wall, cracks appear in the gable wall of the adjoining house. (€88,000, Paid by: Business liability)
- 11:10: A water pipe in the basement that was never disconnected bursts and floods the neighbour's cellar. (€16,000, Paid by: Business liability)
- 13:40: Demolition dust settles on twenty cars at the car dealership next door. All of them need valeting. (€9,500, Paid by: Business liability)
- 15:15: The hydraulic pump of the demolition excavator bursts. A hired machine for two weeks keeps the site running. (€21,000, Paid by: Business interruption)
- 17:30: Oil leaks from a damaged heating oil tank into the soil. The ground has to be excavated and disposed of. (€42,000, Paid by: Business liability)

**Damage so far:** €200,500

## Practical tips from your broker

- Check that demolition, pulling-down and, if relevant, blasting work are expressly named in the policy; standard tariffs for building trades often exclude them.
- Environmental liability and environmental damage insurance belong in every demolition firm's policy, with a separate limit for soil and groundwater.
- Choose at least €5 million cover, and preferably €10 million for inner-city demolition.
- Have asbestos and hazardous substance removal included if you do it yourself; otherwise exactly that loss stays with you.
- Secure machines with immobilisers and tracking; many insurers lower the premium for it or require it for theft cover.
- Commission a condition survey of neighbouring buildings before you start and give it to the insurer.

## Why NAMMERT for your business

- **We find insurers who write demolition:** Many insurers decline demolition or exclude the core work. As a broker we approach several insurers that genuinely want to carry the risk.
- **Difficult claims are our craft:** In boat insurance we settle claims ourselves, including environmental damage from spilt fuel. We know how to document cause and costs properly.
- **Machinery, fleet and liability together:** In demolition everything is connected. We look after liability, machinery and vehicles in one view, so no gap is left between the policies.
- **Family business since 1989:** Our advice costs you nothing; the insurer pays our remuneration. You have one fixed contact person who knows your sites.

## FAQ

### Why is liability insurance so expensive for demolition firms?

Because the potential damage to neighbouring buildings, underground lines and the environment is very high. Published comparisons show premiums of about €1,400 to €3,650 a year even at €50,000 turnover.

### Does ordinary building trades liability cover demolition work?

Often not, or only to a small extent. Demolition and pulling down must be named as activities, or a claim may be refused.

### Is asbestos damage covered?

Only if expressly included. Many policies exclude asbestos. If you remove asbestos, you need a specialist policy and the required proof of expertise.

### What is the difference between environmental liability and environmental damage insurance?

Environmental liability pays for damage claimed by third parties, such as a neighbour with a contaminated well. Environmental damage insurance pays for remediation ordered by an authority under the German Environmental Damage Act, for example to waters or protected land.

### Is my demolition excavator insured against overturning?

Not under liability. Damage to your own machine from overturning, operating errors or theft is covered by machinery insurance.

### Do I need different insurance for earthworks?

Earthworks can sit in the same policy but must be named. What matters then is damage to underground lines and subsidence caused by excavation.

## Request quotes

We obtain quotes and come back with a comparison. Free of charge and without obligation: the insurer pays our commission. You can write in English. https://www.nammert.com/en/business-insurance-demolition.php#anfrage

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NAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker.

NAMMERT Assekuradeur GmbH, Karl-Marx-Straße 4, 15711 Königs Wusterhausen, +49 3375 29 12 77, info@nammert.com. Wikidata: Q141141479.