# Insurance for chemical and pharmaceutical businesses in Germany

> In chemicals, one leaking valve is enough to turn an operational mishap into an environmental case involving the authorities, the neighbours and the press. Then there are products that end up in paints, cleaners or medicines used by thousands of people. This page sets out the insurance chemical and pharmaceutical firms in Germany need and what to expect.

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

## Is general liability with environmental liability enough?

For claims made by neighbours or other third parties, yes, provided all installations are declared correctly. But under the Environmental Damage Act (Umweltschadensgesetz) the authorities can require you to restore waters, protected species or habitats even if nobody sues. Only environmental damage insurance covers that. In chemicals, the two belong together.

## At a glance

- **Compulsory:** Section 94 of the German Medicines Act (Arzneimittelgesetz) requires drug manufacturers to provide financial cover; under the Water Resources Act everyone is liable for water pollution without fault
- **Biggest risk:** Environmental damage to soil, water and air, plus fire and explosion
- **Basic cover from:** around €1,500 a year for liability with environmental blocks for a small blending plant
- **Berufsgenossenschaft:** BG RCI (raw materials and chemical industry), the statutory accident insurer; membership is compulsory once you have staff
- **Often forgotten:** Clean-up ordered by the authorities under the Environmental Damage Act, even when no neighbour has been harmed
- **WZ 2025 / NACE:** 19.10 Kokerei, 19.20 Herstellung von Mineralölerzeugnissen und von fossilen Brennstoffen, 20.11 Herstellung von Industriegasen, 20.12 Herstellung von Farbstoffen und Pigmenten, 20.13 Herstellung von sonstigen anorganischen Grundstoffen und Chemikalien, 20.14 Herstellung von sonstigen organischen Grundstoffen und Chemikalien, 20.15 Herstellung von Düngemitteln und Stickstoffverbindungen, 20.16 Herstellung von Kunststoffen in Primärformen, 20.17 Herstellung von synthetischem Kautschuk in Primärformen, 20.20 Herstellung von Schädlingsbekämpfungs-, Pflanzenschutz- und Desinfektionsmitteln, 20.30 Herstellung von Anstrichmitteln, Druckfarben und Kitten, 20.41 Herstellung von Seifen, Wasch-, Reinigungs- und Poliermitteln, 20.42 Herstellung von Körperpflegemitteln und Duftstoffen, 20.51 Herstellung von flüssigen Biokraftstoffen, 20.59 Herstellung von sonstigen chemischen Erzeugnissen a. n. g., 20.60 Herstellung von Chemiefasern, 21.10 Herstellung von pharmazeutischen Grundstoffen, 21.20 Herstellung von pharmazeutischen Spezialitäten und sonstigen pharmazeutischen Erzeugnissen

## What goes wrong in this trade

- **Substances escape:** A leak at a tank, a burst hose during filling, firefighting water running off after a fire: substances reach the sewer, the soil or a stream.
- **A runaway reaction:** Wrong dosing, a cooling failure or contaminated raw materials set off a reaction that destroys plant and building.
- **An error in the formula:** A cleaner attacks surfaces, an adhesive does not hold, an active ingredient is wrongly dosed. The manufacturer carries the consequences.
- **Recall from retail:** Batches have to be pulled back from shelves and warehouses. Retailers' flat fees per store, logistics and disposal quickly cost more than the goods.
- **The plant is shut down:** After an incident the plant often stays closed until experts and the authorities release it. That takes months.
- **Hazardous substances at work:** Chemical burns, poisoning and skin diseases are the typical workplace accidents and occupational illnesses in the sector.

**Risk radar** (Compared with other trades, 1 low to 5 high.): Liability 5, Fire and water 5, Theft 2, Cyber 4, Downtime 5, Health 4

## The insurance you need

- **Business liability** (Essential): With product liability, environmental liability for every declared installation and environmental damage insurance for clean-up ordered by the authorities. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Business contents** (Essential): Replaces plant, raw materials and finished goods after fire, explosion, burst pipes and storm. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Business interruption** (Essential): After a fire or explosion, business interruption cover secures fixed costs and profit until the plant is released again. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Machinery breakdown** (Strongly advised): For reactors, agitators, pumps and filling lines that fail through operator error or material fatigue. https://www.nammert.com/en/insurance-broker-machinery-breakdown.php
- **Cyber insurance** (Strongly advised): Process control systems and formula data are a rewarding target for attackers, and an outage can affect safety. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Cargo insurance** (Strongly advised): For raw materials and finished goods in transit, including dangerous goods, where an accident quickly brings follow-on costs. https://www.nammert.com/en/insurance-broker-cargo-insurance.php
- **D&O insurance** (Depends on the business): Managing directors are personally liable for environmental breaches and organisational failings; D&O protects their private assets. https://www.nammert.com/en/insurance-broker-directors-and-officers.php
- **Business legal expenses** (Depends on the business): With environmental criminal legal protection, in case you or your staff are investigated after a leak. https://www.nammert.com/en/insurance-broker-business-legal-expenses.php

## What it costs: example prices

Premiums in chemicals and pharma are almost always calculated individually. What matters are the substances, the quantities, the installations covered by the Water Resources Act and whether you supply consumers or industry.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business liability | Small blending plant for cleaning products, up to €2 million turnover, with environmental liability | around €1,500 to €4,500 a year |
| Business liability | Medium sized manufacturer with 50 staff, product and environmental blocks | around €8,000 to €25,000 a year |
| Business contents | Plant and stock worth €3 million | around €5,000 to €12,000 a year |
| Business interruption | Business interruption with an 18 month indemnity period | around €3,000 to €9,000 a year |
| Cyber insurance | Firm with a process control system, around €10 million turnover | around €3,000 to €8,000 a year |

For comparison: For a small blending plant, liability with environmental blocks costs about as much a year as a single tanker load of base chemical.

_Guide figures excluding German insurance tax, as of September 2026, from our own quoting. There are hardly any published tariff examples for chemicals and pharma because almost every business is assessed individually. Recall cover is usually priced per mille of turnover. We obtain the exact quote for you._

- [Funk: Rückrufkosten-Versicherung](https://www.funk-gruppe.de/de/themen-blog/versicherungs-management/rueckrufkosten-versicherung)
- [Kostensieger: Umwelthaftpflichtversicherung für Gewerbe](https://www.kostensieger.de/gewerbe-umwelthaftpflicht-versicherung)
- [transparent-beraten.de: Betriebsunterbrechungsversicherung](https://www.transparent-beraten.de/betriebsunterbrechungsversicherung/)

## Our suggestions: three packages

- **Blending plant** (Small manufacturers and fillers with a few tanks and their own brand): Business liability, Business contents, Business interruption. Together: around €4,000 to €10,000 a year
- **Production** (Manufacturers with reactors, a hazardous goods store and industrial customers): Business liability, Business contents, Business interruption, Machinery breakdown, Cargo insurance. Together: around €15,000 to €40,000 a year
- **Works** (Medium sized firms with process control, a GmbH and exports): Business liability, Business contents, Business interruption, Machinery breakdown, Cargo insurance, Cyber insurance, D&O insurance, Business legal expenses. Together: around €35,000 to €90,000 a year

## The worst day at a chemical plant

Six events that happen at chemical and pharmaceutical firms, all put together on one Tuesday. Tap through and see which policy steps in.

- 07:20: A hose bursts during transfer. 800 litres of solvent run into the storm drain and on into the stream. (€140,000, Paid by: Business liability)
- 09:50: A customer reports that a batch of surface cleaner has damaged stainless steel worktops in 30 commercial kitchens. (€90,000, Paid by: Business liability)
- 12:30: The reactor's agitator breaks, the batch has to be disposed of and the reactor is out for three weeks. (€55,000, Paid by: Machinery breakdown)
- 14:15: The process control system reports unknown access, and production is shut down as a precaution. (€75,000, Paid by: Cyber insurance)
- 17:40: The lorry carrying your goods crashes on the motorway. Damaged drums, recovery and disposal. (€48,000, Paid by: Cargo insurance)
- 21:10: A fire in the warehouse destroys raw materials and finished goods. The plant stays closed until it is released. (€900,000, Paid by: Business contents)

**Damage so far:** €1,308,000

## Practical tips from your broker

- Declare every installation holding substances hazardous to water individually in your environmental liability and keep the list up to date with every change.
- Add environmental damage insurance and check whether your own land and the groundwater beneath it are covered.
- Agree high limits for firefighting water, clearance and decontamination; after a chemical fire these costs are often higher than the property damage.
- Insure recall costs separately, especially if your products are sold in shops: retailers' flat fees per store add up fast.
- If you make medicines, agree the financial cover under Section 94 of the Medicines Act with the insurer and have it confirmed in writing.
- Include environmental criminal legal protection: after a leak, prosecutors often investigate management and shift supervisors.

## Why NAMMERT for your business

- **We separate what often gets mixed up:** Environmental liability, environmental damage and recall are three contracts with their own rules. We arrange them for your business and compare quotes from several insurers.
- **Claims knowledge at first hand:** In boat insurance we settle claims ourselves, including oil spills in harbours. We know how insurers calculate after an environmental loss.
- **Business and management together:** We align D&O, criminal legal protection and business policies so that both the company and the people in charge are protected.
- **A family business since 1989:** You speak to people who know your policies, in English if you prefer. Free for you; the insurer pays our commission.

## FAQ

### Is environmental liability compulsory for chemical firms?

There is no general statutory duty to insure. But under the Water Resources Act and the Environmental Liability Act you are liable even without fault, so in practice it is indispensable.

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

Environmental liability pays claims by third parties, such as a neighbour. Environmental damage insurance pays for clean-up ordered by an authority under the Environmental Damage Act.

### Do pharmaceutical manufacturers need special insurance?

Yes. Anyone placing medicines on the market must prove financial cover under Section 94 of the Medicines Act, usually through pharmaceutical liability insurance.

### What does insurance cost for a small chemical firm?

A small blending plant usually pays €4,000 to €10,000 a year for liability with environmental blocks, contents and business interruption. Larger firms are calculated individually.

### Does liability insurance pay for a recall?

No. Recall costs are a separate block. Liability only pays once the product has caused injury or damage to property.

### Who pays after a workplace accident with hazardous substances?

BG RCI, the statutory accident insurer, pays for treatment, rehabilitation and pensions. Claims for damages against the employer are then largely excluded; group accident insurance can pay on top.

## 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-chemicals.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.