# Insurance for debt collection agencies in Germany

> In Germany, collecting other people's debts is a regulated legal service. Debt collection agencies must be registered with the Federal Office of Justice (Bundesamt für Justiz), and professional indemnity insurance is a condition of registration. This page explains the rules, the insurance that matters for collection agencies in Germany and what it costs.

Quelle/Source: https://www.nammert.com/en/business-insurance-debt-collection-agency.php  
Updated: 2026-10-15

## Is the legal minimum of 250,000 euros enough for my agency?

It is enough for registration, but often not for the business. If you collect large portfolios for big clients, one systematic error, such as missing the limitation period on many files, can exceed it. A limit of 500,000 euros or 1 million euros per claim, with a matching annual aggregate, is often more sensible.

## At a glance

- **Registration:** Only persons registered with the Federal Office of Justice may provide debt collection services (section 10 RDG)
- **Compulsory insurance:** Professional indemnity of at least 250,000 euros for each claim (section 12 RDG)
- **Disclosure duties:** The first demand to a private person must name the client, the reason for the claim and the interest calculation in text form (section 13a RDG)
- **Basic cover from:** about 400 euros a year for the compulsory minimum of a small agency, a guide figure from our quoting work
- **Often forgotten:** Cover against fraud and data loss, although agencies hold client money and large amounts of debtor data

## What goes wrong in this trade

- **Limitation period missed:** A court payment order is filed too late and the debt becomes time barred. The client claims the lost amount from the agency.
- **Wrong debtor:** Someone with the same name receives demands. They hire a lawyer and want their costs paid.
- **Excessive charges:** Fees or interest are calculated wrongly. Debtors want money back and the client holds you responsible.
- **Client money:** Collected payments sit in your account until they are passed on. A fake email redirects a payout to fraudsters.
- **Data breach:** Debtor files hold bank details and addresses. An attack means recovery costs, notifications and claims.
- **Software down:** If your collection software fails for days, deadlines and incoming payments stall.

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

## The insurance you need

- **Professional indemnity** (Essential): Financial loss liability is a condition of registration under section 12 RDG and pays when a client or third party loses money through your error. https://www.nammert.com/en/insurance-broker-professional-indemnity.php
- **Cyber insurance** (Strongly advised): For data breaches, ransomware and, depending on the policy, payment fraud, including forensics and notification costs. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Business contents** (Strongly advised): Protects office furniture, equipment and files against fire, water, burglary and storm. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Business legal expenses** (Strongly advised): For disputes with your landlord, staff or suppliers. Liability claims from clients are handled by the professional indemnity. https://www.nammert.com/en/insurance-broker-business-legal-expenses.php
- **Business liability** (Depends on the business): For injury and property damage, for example a visitor falling in your office. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Electronic equipment** (Depends on the business): For servers, laptops and phone systems, including operating errors and power surges. https://www.nammert.com/en/insurance-broker-electronic-equipment.php
- **Business interruption** (Depends on the business): Pays ongoing costs and lost income if the office cannot work after physical damage. https://www.nammert.com/en/insurance-broker-business-interruption.php

## What it costs: example prices

Premiums depend on the limit, turnover, number of files, type of clients and claims history. Agencies that also buy debts or work for banks are assessed more closely.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Professional indemnity | Small agency, compulsory 250,000 euros per claim | about 400 to 1,000 euros a year |
| Professional indemnity | Agency with ten staff, 1 million euros per claim | about 1,500 to 4,000 euros a year |
| Cyber insurance | Office with ten workstations, 500,000 euros limit | about 900 to 2,500 euros a year |
| Business contents | Furniture and equipment worth 60,000 euros | about 150 to 400 euros a year |
| Business legal expenses | Office with ten staff | about 600 to 1,400 euros a year |

For comparison: The compulsory cover of a small agency costs about as much a year as the court fees for a handful of payment orders.

_All prices are guide figures from our own quoting work in 2026, excluding German insurance premium tax. The minimum limit comes from section 12 RDG; premiums are calculated per agency from a proposal form._

- [Legal Services Act (RDG), section 10: registration for debt collection](https://www.gesetze-im-internet.de/rdg/__10.html)
- [Legal Services Act (RDG), section 12: conditions and professional indemnity](https://www.gesetze-im-internet.de/rdg/__12.html)
- [Legal Services Act (RDG), section 13a: disclosure duties](https://www.gesetze-im-internet.de/rdg/__13a.html)

## Our suggestions: three packages

- **Start** (Agency with a few clients and one to three staff): Professional indemnity, Cyber insurance, Business contents. Together: about 1,200 to 3,000 euros a year
- **Established agency** (Large clients, phone team and own software): Professional indemnity, Cyber insurance, Business contents, Business legal expenses, Electronic equipment. Together: about 3,500 to 9,000 euros a year
- **With business protection** (Agencies that lose income immediately when they stop): Professional indemnity, Cyber insurance, Business contents, Business interruption, Business liability. Together: about 4,000 to 10,000 euros a year

## The worst day at a collection agency

Six things collection agencies really go through, all on one Monday. Click through and see who pays.

- 08:20: A client finds that the limitation period was not stopped on 40 files and claims damages. (€36,000, Paid by: Professional indemnity)
- 10:05: A person with the same name as a debtor sends you their lawyer's bill. (€1,800, Paid by: Professional indemnity)
- 12:40: A fake email from a client changes the bank details and a payout goes to fraudsters. (€21,000, Paid by: Cyber insurance)
- 14:15: A debtor coming in to agree instalments slips on the wet stairs. (€6,500, Paid by: Business liability)
- 16:50: A burst pipe floods the server room; server and phone system are down. (€14,000, Paid by: Electronic equipment)
- 19:30: A former employee sues for commission on instalment agreements. (€4,200, Paid by: Business legal expenses)

**Damage so far:** €83,500

## Practical tips from your broker

- Choose your limit according to your largest clients, not just the legal minimum in section 12 RDG.
- Make sure court payment order work, debt purchase and credit reporting are covered if you offer them.
- Call back to verify any new bank details for payouts; many cyber policies ask about this.
- Check your first demand letter templates regularly against the disclosure duties in section 13a RDG.
- Keep client money separate and document every payout.
- Tell the insurer about growing turnover in good time so the limit keeps pace.

## Why NAMMERT for your business

- **We read the terms:** As an insurance broker, Norman Nammert compares several insurers and shows where activity wording, annual aggregates and exclusions differ.
- **Compulsory cover and business together:** Professional indemnity, cyber and office are kept in one file, so nothing is insured twice or not at all.
- **Brokering since 1989:** Our work is free for you; the insurer pays our commission. You speak to people who know your agency, in English or German.

## FAQ

### Does a debt collection agency need to be registered in Germany?

Yes. Under section 10 RDG only persons registered with the Federal Office of Justice may provide debt collection services.

### Which insurance is compulsory?

Professional indemnity with a minimum limit of 250,000 euros for each claim, as required by section 12 RDG.

### How much does professional indemnity cost?

As a guide figure from our quoting work, about 400 to 1,000 euros a year for a small agency with the minimum limit, and considerably more with 1 million euros and more staff.

### What must the first demand to a private person contain?

Under section 13a RDG, among other things the client's name and address, the reason for the claim and, where interest is charged, an interest calculation, in clear text form.

### Does cyber insurance help if money was paid to fraudsters?

Many policies offer a module for this with its own limit, often only if internal approval rules were followed. We compare this for you.

### Is buying debts covered as well?

That depends on the policy. Describe every activity to the insurer, including debt purchase and credit reporting, so it is expressly included.

## 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-debt-collection-agency.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.