# Insurance for electronics manufacturers and electrical engineering firms in Germany

> A cold solder joint, a wrongly placed component, a software bug in the controller: in electronics the fault is tiny and the damage is large, because your assemblies sit inside other people's machines, vehicles and medical devices. Add expensive placement lines and sensitive stock. This page shows what to insure in Germany.

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

## Are we also covered for faults in the firmware?

That depends on the policy. Many older product liability policies only have hardware in mind. The new EU Product Liability Directive, which must be transposed into German law by December 2026, expressly counts software as a product. Get written confirmation that damage caused by firmware and software in your devices is included.

## At a glance

- **Compulsory:** No statutory insurance; if you sell electrical devices to private customers you must register with Stiftung EAR, the German registry for waste electrical equipment, and provide an insolvency proof guarantee for disposal
- **Biggest risk:** Series defects in assemblies that trigger removal, replacement and downtime at the customer
- **Basic cover from:** around €500 a year for the general liability of a small PCB assembler
- **Berufsgenossenschaft:** BG ETEM (energy, textiles, electrical and media), the statutory accident insurer, compulsory once you have staff
- **Often forgotten:** Software as part of the product; the new EU Product Liability Directive expressly includes it
- **WZ 2025 / NACE:** 26.11 Herstellung von elektronischen Bauelementen, 26.12 Herstellung von bestückten Leiterplatten, 26.20 Herstellung von Datenverarbeitungsgeräten und peripheren Geräten, 26.30 Herstellung von Geräten und Einrichtungen der Telekommunikationstechnik, 26.40 Herstellung von Geräten der Unterhaltungselektronik, 26.51 Herstellung von Mess-, Kontroll-, Navigations- u. ä. Instrumenten und Vorrichtungen, 26.52 Herstellung von Uhren, 26.60 Herstellung von Bestrahlungs- und Elektrotherapiegeräten und elektromedizinischen Geräten, 26.70 Herstellung von optischen und fotografischen Instrumenten und Geräten sowie von magnetischen und optischen Datenträgern, 27.11 Herstellung von Elektromotoren, Generatoren und Transformatoren, 27.12 Herstellung von Elektrizitätsverteilungs- und -schalteinrichtungen, 27.20 Herstellung von Batterien und Akkumulatoren, 27.31 Herstellung von Glasfaserkabeln, 27.32 Herstellung von sonstigen elektronischen und elektrischen Drähten und Kabeln, 27.33 Herstellung von elektrischem Installationsmaterial, 27.40 Herstellung von Lampen und Leuchten, 27.51 Herstellung von elektrischen Haushaltsgeräten, 27.52 Herstellung von nichtelektrischen Haushaltsgeräten, 27.90 Herstellung von sonstigen elektrischen Ausrüstungen und Geräten, 33.13 Reparatur und Instandhaltung von elektronischen und optischen Geräten, 33.14 Reparatur und Instandhaltung von elektrischen Ausrüstungen

## What goes wrong in this trade

- **A fault in the series:** A wrong reel in the pick and place machine or a faulty soldering process affects thousands of assemblies before testing catches it.
- **A fire caused by your product:** A power supply overheats, a battery swells: fire damage at the end customer is the most expensive product liability case in the sector.
- **Power surges in production:** Lightning or grid fluctuations destroy placement machines, reflow ovens and test systems.
- **Attacks on data and devices:** Design data, firmware and update servers are targets for attackers. A manipulated update can disable devices at the customer's site.
- **Valuable components in stock:** Chips and modules are small, expensive and easy to sell. Theft and supply shortages hit at the same time.
- **Static and humidity:** Wrong storage or water damage in the clean room makes whole batches unusable.

**Risk radar** (Compared with other trades, 1 low to 5 high.): Liability 5, Fire and water 4, Theft 3, Cyber 5, Downtime 4, Health 2

## The insurance you need

- **Business liability** (Essential): With extended product liability for removal and refitting, further processing and software, because your assemblies are built into other people's devices. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Business contents** (Essential): Replaces component stock, work in progress and fittings after fire, burst pipes, storm and burglary. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Electronic equipment** (Strongly advised): Covers placement machines, soldering systems, test and measuring equipment against power surges, operator error and moisture. https://www.nammert.com/en/insurance-broker-electronic-equipment.php
- **Cyber insurance** (Strongly advised): Secures lost income, recovery and liability after an attack on production, firmware or the update server. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Business interruption** (Strongly advised): Bridges the months until a destroyed line is replaced, because placement machines are not available off the shelf. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Cargo insurance** (Depends on the business): For components shipped from Asia and finished assemblies on their way to the customer. https://www.nammert.com/en/insurance-broker-cargo-insurance.php
- **D&O insurance** (Depends on the business): Protects management against allegations about product safety, export control or compliance. https://www.nammert.com/en/insurance-broker-directors-and-officers.php

## What it costs: example prices

Premiums depend heavily on where your products are used. Assemblies for household appliances are cheaper to insure than those for cars, aviation or medical technology.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business liability | Small PCB assembler or electrical engineering firm, up to €500,000 turnover | around €400 to €1,500 a year |
| Business liability | Electronics manufacturer with 40 staff, extended product liability, industrial customers | around €4,000 to €12,000 a year |
| Electronic equipment | Placement line and test equipment with a new value of €500,000 | around €2,500 to €6,000 a year |
| Business contents | Components and fittings worth €1 million | around €1,200 to €3,000 a year |
| Cyber insurance | Manufacturer with around €5 million turnover and its own firmware | around €2,000 to €5,000 a year |

For comparison: Liability and contents insurance for a small PCB assembler cost about as much a year as one reel of 5,000 high quality voltage regulators.

_Guide figures excluding German insurance tax, as of September 2026. Electronic equipment insurance is usually priced as a percentage of the sum insured, at the lower end for modern, well maintained equipment. The other ranges come from published tariff examples and our own quoting. We obtain the exact quote._

- [transparent-beraten.de: Betriebshaftpflicht für Handwerker, Beispiel Elektrotechnik](https://www.transparent-beraten.de/betriebshaftpflichtversicherung/arten/handwerker/)
- [gewerbeversicherung.de: Elektronikversicherung](https://www.gewerbeversicherung.de/versicherungen/elektronikversicherung/)
- [berufshaftpflichtversicherung-experten.de: Betriebshaftpflicht Maschinenbau](https://berufshaftpflichtversicherung-experten.de/betriebshaftpflicht-maschinenbau/)

## Our suggestions: three packages

- **Lab** (Small developers, control panel builders and assemblers with a few machines): Business liability, Business contents. Together: around €800 to €2,500 a year
- **Line** (Manufacturers with a placement line, testing and industrial customers): Business liability, Business contents, Electronic equipment, Business interruption. Together: around €8,000 to €20,000 a year
- **Connected** (Manufacturers with their own firmware, updates and exports): Business liability, Business contents, Electronic equipment, Business interruption, Cyber insurance, Cargo insurance, D&O insurance. Together: around €15,000 to €35,000 a year

## The worst day in electronics manufacturing

Six losses electronics manufacturers really experience, put together on one Thursday. Tap through and see who pays.

- 07:30: A lightning strike overnight has destroyed the placement machine and two test stations. (€68,000, Paid by: Electronic equipment)
- 09:45: A machine builder reports failed control boards. 3,000 units have to be replaced at the end customer. (€120,000, Paid by: Business liability)
- 12:10: A power supply from your production overheats at an end customer's home, and the kitchen burns out. (€45,000, Paid by: Business liability)
- 14:30: Attackers have taken over the update server and devices fail at customers' sites. Forensics and a rebuild. (€85,000, Paid by: Cyber insurance)
- 17:15: The sea freight with components from Asia arrives water damaged. (€38,000, Paid by: Cargo insurance)
- 23:20: Burglars take processors and memory chips from the store. (€55,000, Paid by: Business contents)

**Damage so far:** €411,000

## Practical tips from your broker

- Have software and firmware expressly included in your product liability, also for updates you deliver after the sale.
- Agree extended product liability with removal and refitting costs and inspection and sorting costs; without these blocks a series defect stays with you.
- Insure placement machines under electronic equipment insurance including power surge and lightning, not just under contents insurance.
- Check deliveries to the USA and aviation and medical technology separately; they often carry their own exclusions.
- Provide for the extra cost of having production done by third parties if your line fails and customers still need supplying.
- Arrange the disposal guarantee required by the German Electrical and Electronic Equipment Act in good time if you sell devices to private customers.

## Why NAMMERT for your business

- **We check the policy for software:** Whether firmware is covered is often in the small print. As a broker we compare the wordings of several insurers at exactly that point.
- **Claims practice from our own settlement work:** For boats we settle claims ourselves as an underwriting agency, including electronic and power surge damage on board. We know how causes are proved.
- **Production and management aligned:** Product liability, cyber and D&O interlock. We make sure no gap remains between the policies.
- **A family business since 1989:** A fixed contact and short lines of communication, in English if you like. Our work costs you nothing; the insurer pays our commission.

## FAQ

### Does an electronics manufacturer need extended product liability?

Yes, as soon as your assemblies are built into other people's devices. Only extended cover pays for removal, refitting and further processing at the customer.

### What changes with the new EU Product Liability Directive?

It counts software and digital services as products and makes it easier for injured parties to prove their case. It must be transposed into German law by December 2026. Check your policy for it.

### What does electronic equipment insurance cost?

A typical premium is around half a percent to one and a half percent of the sum insured a year, depending on the age of the equipment, maintenance and the excess.

### Does contents insurance pay for power surge damage?

Often only up to a small sum. For expensive production equipment, electronic equipment insurance is the better protection.

### What are my duties under the German Electrical and Electronic Equipment Act?

Anyone placing electrical devices on the German market must register with Stiftung EAR. For devices sold to private customers, an insolvency proof guarantee for disposal is required.

### Which Berufsgenossenschaft is responsible?

BG ETEM, the statutory accident insurer for the sector. Membership is compulsory as soon as you have employees.

## 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-electronics-manufacturing.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.