# Insurance for insolvency administrators and their firms in Germany

> An insolvency administrator (Insolvenzverwalter) manages other people's money and is personally liable when something goes wrong. A supplier who ends up unpaid, a security right that was overlooked, a transfer to a fraudster: claims quickly reach six or seven figures. This page explains the liability under German law, the cover that matters for administrators and their firms, and what it costs.

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

## Does my law firm's professional indemnity cover my work as an insolvency administrator?

Not automatically. The statutory minimum of 250,000 euros under section 51 BRAO is often too low for a case where the business keeps trading, and not every policy names the roles of administrator, custodian (Sachwalter) or trustee. Ask for written confirmation that these roles are insured and consider extra cover for large cases.

## At a glance

- **Liability:** Personal liability to all parties under section 60 of the Insolvency Code (InsO), plus section 61 InsO for estate debts the administrator took on that cannot be paid in full
- **Compulsory insurance:** Administrators who are lawyers need professional indemnity under section 51 of the Federal Lawyers Act (BRAO), at least 250,000 euros per claim
- **Biggest risk:** Financial loss suffered by creditors, secured creditors and estate creditors in large cases
- **Basic cover from:** about 1,500 euros a year for financial loss liability of 1 million euros, a guide figure from our quoting work
- **Often forgotten:** Extra cover for a single large case when the firm's standard limit is not enough

## What goes wrong in this trade

- **The estate runs dry:** You order supplies to keep the business trading, then the estate turns out to be insufficient. The supplier claims payment from you personally under section 61 InsO.
- **Third party rights overlooked:** Goods under retention of title are sold with the business, or a security right is missed. The owner claims damages.
- **Deadlines and avoidance claims:** A deadline for clawing back payments expires. Creditors lose money and look to the administrator.
- **Payment to a fraudster:** A fake email announces new bank details, the trust account pays the wrong party. The money is gone.
- **Files and data:** Administrator firms hold data on debtors, employees and creditors. A data breach means recovery costs, notifications and claims.
- **Running someone else's business:** When the business keeps trading you are responsible for a company whose insurance you first have to check.

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

## The insurance you need

- **Professional indemnity** (Essential): Financial loss liability is the core: it pays justified claims under sections 60 and 61 InsO and defends unjustified ones. For lawyers it is compulsory under section 51 BRAO. https://www.nammert.com/en/insurance-broker-professional-indemnity.php
- **Cyber insurance** (Strongly advised): For data breaches, ransomware and, depending on the policy, payments made after fake emails. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Business contents** (Strongly advised): Protects furniture, equipment and files against fire, water damage, burglary and storm. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Business legal expenses** (Strongly advised): For disputes with landlords, staff and service providers of the firm. Liability claims themselves run through the indemnity policy. 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 the office or damage during a site visit. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Electronic equipment** (Depends on the business): For laptops, servers and scanners, including operating errors and theft on the road. https://www.nammert.com/en/insurance-broker-electronic-equipment.php
- **Occupational disability** (Depends on the business): Appointments are personal. If you are off work for long, the fees stop. https://www.nammert.com/en/insurance-broker-occupational-disability.php

## What it costs: example prices

Premiums depend on the limit, the number and size of cases, annual fees and claims history. Large cases often get their own extra cover.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Professional indemnity | Sole administrator, small and consumer cases, 1 million euros per claim | about 1,500 to 4,000 euros a year |
| Professional indemnity | Firm with three administrators and trading cases, 5 million euros | about 8,000 to 25,000 euros a year |
| Professional indemnity | Extra cover for one large case, a further 5 million euros | about 1,000 to 6,000 euros per case |
| Cyber insurance | Firm with ten workstations, 500,000 euros limit | about 900 to 2,500 euros a year |
| Business contents | Furniture and equipment worth 80,000 euros | about 200 to 500 euros a year |

For comparison: The basic cover of a sole administrator costs about as much a year as the fee for one small consumer insolvency.

_All prices are guide figures from our own quoting work in 2026, excluding German insurance premium tax. There are hardly any published tariffs for insolvency administrators; every policy is priced from a proposal form._

- [Insolvency Code, section 60: liability of the administrator](https://www.gesetze-im-internet.de/inso/__60.html)
- [Insolvency Code, section 61: unpaid estate debts](https://www.gesetze-im-internet.de/inso/__61.html)
- [Federal Lawyers Act, section 51: professional indemnity](https://www.gesetze-im-internet.de/brao/__51.html)

## Our suggestions: three packages

- **Sole administrator** (administrator with consumer and small cases in their own office): Professional indemnity, Cyber insurance, Business contents. Together: about 2,600 to 7,000 euros a year
- **Administrator firm** (several administrators, custodianships and trading cases): Professional indemnity, Cyber insurance, Business contents, Business legal expenses, Electronic equipment. Together: about 10,000 to 30,000 euros a year
- **Large case** (single cases with a large estate and many employees): Professional indemnity. Together: priced per case, usually from about 1,000 euros

## The worst day at an administrator's office

Six things insolvency administrators really go through, all on one Tuesday. Tap through and see who pays.

- 08:15: A supplier to the trading business calls: his invoice for raw materials can no longer be paid in full from the estate. (€48,000, Paid by: Professional indemnity)
- 10:30: A bank complains that its collateral was sold without agreement and demands the proceeds. (€65,000, Paid by: Professional indemnity)
- 12:05: Accounts pay a supplier's invoice to a new account after a fake email. The money is gone. (€23,000, Paid by: Cyber insurance)
- 14:40: A creditor trips over a cable in the meeting room and breaks his wrist. (€7,500, Paid by: Business liability)
- 17:20: A water pipe bursts in the archive, shelves and the scanner stand in water. (€12,000, Paid by: Business contents)
- 21:00: The landlord demands a large service charge payment that you believe is wrong. (€3,200, Paid by: Business legal expenses)

**Damage so far:** €158,700

## Practical tips from your broker

- Ask for written confirmation that work as administrator, custodian, trustee and provisional administrator is insured.
- At the start of every large case, check whether your annual limit is enough and buy extra cover for that case if needed.
- Watch the annual aggregate: several claims in one year often share the same limit.
- When a business keeps trading, check early which of the debtor's policies are still running and whether premiums are paid.
- Use call backs whenever bank details change; many cyber insurers ask about exactly that.
- Think about run off cover: claims often arrive years after a case closes, even after you retire.

## Why NAMMERT for your business

- **We read the terms:** As an insurance broker, Norman Nammert compares several insurers and shows you where cover for administrator roles, extra limits and annual aggregates differ.
- **Firm and cases together:** Basic cover, cover per case, cyber and office are kept in one file, so nothing is insured twice or not at all.
- **Family run since 1989:** Our work is free for you; the insurer pays our commission. You speak to people who know your firm, in English or German.

## FAQ

### What is an insolvency administrator personally liable for?

Under section 60 InsO for damage caused to any party by a culpable breach of duty. Under section 61 InsO also when an estate debt the administrator took on cannot be paid in full and this was foreseeable.

### Which insurance is compulsory?

For lawyers, professional indemnity under section 51 BRAO with at least 250,000 euros per claim. For administrator work this limit is often too low.

### What does cover cost?

As a guide from our quoting work, about 1,500 to 4,000 euros a year for a sole administrator with 1 million euros. Firms with trading cases pay considerably more.

### What is extra cover per case?

An additional limit for one specific case that sits above the firm's basic cover, so the whole firm does not need a very high limit because of one large case.

### Are custodians and trustees covered?

That depends on the policy. Make sure every role is named, including provisional administration and custodianship in self administration.

### Does cyber insurance help with payment fraud?

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

## 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-insolvency-administrator.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.