# Industrial insurance for manufacturers in Germany: property, business interruption, liability and more

> A fire on the shop floor does not just destroy machines. It stops production for months while customers move elsewhere. That is why industrial insurance puts business interruption on a par with property cover, alongside liability with product liability, environmental cover, transit, D&O and cyber. This page explains how it works under German law for manufacturers run or owned by English speakers. To be honest: large industrial risks with high values are placed by industrial insurers and brokers who specialise in them, often with several insurers sharing the risk.

Quelle/Source: https://www.nammert.com/en/business-insurance-industrial-company.php  
Updated: 2026-10-14

## Do I need a specialist industrial broker?

It depends on size and values. A manufacturer with one site and moderate values is well served by commercial packages, which we compare. Once you count as a large risk, run several plants, export to the USA or have fire prone production, industrial insurers underwrite individually, often with surveys by risk engineers and several insurers in a consortium. A broker with an industrial department is then usually the better choice, and we will tell you so.

## At a glance

- **Compulsory:** No general compulsory cover; motor liability for vehicles, and § 19 of the Environmental Liability Act (Umwelthaftungsgesetz) provides for financial security for plants listed in its Annex 2
- **Biggest risk:** Fire or machinery breakdown followed by a long production stop, and defective products causing recalls and losses at customers
- **Basic cover from:** a few thousand euros a year for a small manufacturer; with high values, property premiums are calculated per mille of the sum insured
- **Large risk:** Above two of three thresholds (€6.6 million balance sheet, €13.6 million turnover, 250 employees), property and liability count as large risks under § 210 of the Insurance Contract Act (VVG), and its protective rules can be contracted out
- **Statutory accident insurer:** Compulsory membership of the Berufsgenossenschaft (statutory accident insurer) for your sector, covering all employees

## What goes wrong in this trade

- **Fire in the plant:** Dust extraction, swarf, solvents: a fire can destroy buildings, machines and stock in a single night.
- **Production stop:** Replacing a special machine can take months. Wages, rent and loans keep running while customers switch suppliers.
- **Defective product:** A part fails at your customer, who has to remove, test and recall. Only extended product liability pays these costs.
- **Environmental damage:** A tank leaks and oil reaches the soil or groundwater. Clean up and neighbours' claims get expensive.
- **Cyber attack:** Encrypted servers and frozen controls bring the shop floor to a halt, often with a ransom demand.
- **Directors' liability:** Shareholders, insolvency administrators or authorities hold managing directors personally liable.

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

## The insurance you need

- **Business liability** (Essential): General liability including product liability and, depending on customers, extended product liability for removal and installation costs, recall and financial loss; environmental liability belongs in it too. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Commercial buildings** (Essential): Fire, water, storm and natural hazards for halls and offices, the basis of industrial property cover. https://www.nammert.com/en/insurance-broker-commercial-buildings.php
- **Business contents** (Essential): Machines, stock and equipment against fire, water, storm and burglary. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Business interruption** (Essential): After property damage it replaces lost gross profit and running costs until production is back. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Machinery breakdown** (Strongly advised): Covers operating errors, short circuits and material defects in production equipment, which fire cover does not. https://www.nammert.com/en/insurance-broker-machinery-breakdown.php
- **Cargo insurance** (Strongly advised): Raw materials and finished goods in transit, as an annual policy for all shipments. https://www.nammert.com/en/insurance-broker-cargo-insurance.php
- **D&O insurance** (Strongly advised): Protects managing directors and board members against personal liability for management errors. https://www.nammert.com/en/insurance-broker-directors-and-officers.php
- **Cyber insurance** (Strongly advised): Business interruption after attacks, data recovery and data protection incidents. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Trade credit insurance** (Depends on the business): Protects receivables from business customers if a major buyer becomes insolvent. https://www.nammert.com/en/insurance-broker-trade-credit.php

## What it costs: example prices

Industrial insurance is not off the shelf. Property premiums are per mille of the sum insured, liability follows turnover and export share, and fire protection on site counts as much as the sector.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business liability | Supplier with €10 million turnover, extended product liability, no USA exports | about €4,000 to €12,000 a year |
| Business contents | Industrial property for buildings and contents, €10 million sum insured, metalworking | about €8,000 to €25,000 a year |
| Business interruption | €3 million gross profit, twelve months indemnity period | about €3,000 to €10,000 a year |
| D&O insurance | GmbH with €20 million turnover, €5 million limit | about €3,000 to €8,000 a year |
| Cyber insurance | Manufacturer with €20 million turnover, €1 million limit | about €3,000 to €9,000 a year |

For comparison: A year of property cover for a mid sized plant often costs less than a single day of standstill.

_Guide prices from our quoting practice, as of October 2026, excluding insurance tax. Published tariffs for industrial risks hardly exist; fire protection, sector, exports and claims history move the premium a lot. Large risks are underwritten individually._

- [German federal law portal: § 210 VVG, large risks](https://www.gesetze-im-internet.de/vvg_2008/__210.html)
- [German federal law portal: § 19 Umwelthaftungsgesetz](https://www.gesetze-im-internet.de/umwelthg/__19.html)

## Our suggestions: three packages

- **Small plant** (Manufacturer with one site and up to about 20 employees): Business liability, Business contents, Business interruption. Together: about €4,000 to €15,000 a year
- **Mid sized** (Manufacturer with own hall, exports within Europe and employed managing directors): Business liability, Commercial buildings, Business contents, Business interruption, Machinery breakdown, Cargo insurance, D&O insurance, Cyber insurance. Together: about €20,000 to €80,000 a year
- **Large risk** (Companies above the § 210 VVG thresholds, several plants or USA exports): Business liability, Commercial buildings, Business contents, Business interruption, D&O insurance, Trade credit insurance. Together: individual, through industrial insurers and specialist brokers

## The worst day at the plant

Six things that really happen to manufacturers, here all on one Monday. Click through and see who pays.

- 06:10: A smouldering fire in the extraction system spreads to the paint shop. (€850,000, Paid by: Business contents)
- 06:11: The paint line is down for four months and orders have to be outsourced. (€1,200,000, Paid by: Business interruption)
- 09:30: A customer reports broken brackets from one batch and claims removal and installation costs. (€180,000, Paid by: Business liability)
- 11:45: The control unit of a press fails after a short circuit. (€65,000, Paid by: Machinery breakdown)
- 14:20: A container of finished goods is damaged on the way to the port. (€40,000, Paid by: Cargo insurance)
- 22:00: Malware encrypts the server holding all production orders. (€220,000, Paid by: Cyber insurance)

**Damage so far:** €2,555,000

## Practical tips from your broker

- Set sums insured at replacement value and have them reviewed regularly; underinsurance reduces every claim proportionally.
- Choose the business interruption indemnity period by the delivery time of your key machine; twelve months is often too short.
- Check supply contracts for liability clauses and required limits before you sign.
- Declare exports to the USA and Canada; without disclosure, cover there is often excluded.
- Invest in fire protection: sprinklers, fire alarms and tidy halls noticeably lower the premium.
- Above the § 210 VVG thresholds, have policy wordings checked carefully, because statutory protections may be contracted out.

## Why NAMMERT for your business

- **Honest assessment:** We tell you whether commercial packages fit your business or whether an industrial broker with risk engineers is the better choice.
- **Comparison for mid sized firms:** Norman Nammert compares several insurers as an insurance broker and lays out the wordings side by side, in English if you prefer.
- **Business and private in one place:** Company policies, employee benefits and the owners' private policies with one contact.
- **Brokering since 1989:** A family business with short lines. Our advice costs you nothing; the insurer pays our commission.

## FAQ

### Which insurance is compulsory for manufacturers in Germany?

There is no general requirement. Motor liability for vehicles and the Berufsgenossenschaft for employees are compulsory; for plants listed in Annex 2 of the Environmental Liability Act, § 19 provides for financial security, and the authority can prohibit operation if proof is missing.

### What is a large risk?

Under § 210 VVG, property and liability insurance count as a large risk if the company exceeds two of three thresholds: €6.6 million balance sheet total, €13.6 million turnover, 250 employees on average. Transit insurance is always a large risk. The protective rules of the VVG can then be contracted out.

### Why does business interruption matter so much?

Because after a fire the standstill usually costs more than the physical damage. The policy pays lost gross profit and running costs for the agreed period.

### What does extended product liability cover?

Financial losses at your customer, such as removal and installation costs, testing costs and damage from combining defective parts. Recall costs need a separate module.

### Can you handle a large industrial group?

For large risks with high limits, several sites or consortium cover, we recommend a specialist industrial broker. For mid sized manufacturers we are glad to compare.

### What does industrial insurance cost?

For a small manufacturer the core lines start at a few thousand euros a year; mid sized firms usually pay €20,000 to €80,000. These are guide prices from our quoting practice.

## Request quotes

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

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Your broker: Norman Nammert, trading as NAMMERT. Insurance broker licensed under section 34d(1) of the German Trade Regulation Act. Broker register no. D-C08Q-TOSD4-37. NAMMERT Assekuradeur GmbH is a separate company. It does not arrange your contract.

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