# Insurance for IT service providers, system integrators and software developers in Germany

> An update takes down the client's stock management system, a backup script has been running into the void for months, an admin forgets the installation on half the machines: IT mistakes hardly ever cost hardware, they cost the client's revenue. That is why ordinary public liability cover is not enough here. This page explains what you need and what it costs.

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

## Do I need IT liability and cyber insurance, or is one enough?

They are two different things. IT liability pays when your mistake causes a loss for a client and the client claims against you. Cyber insurance pays your own costs when you are attacked: forensics, recovery, downtime. If you manage client systems you need both, because an attack on you hits your clients straight away.

## At a glance

- **Compulsory:** No statutory insurance duty. Large corporations, public authorities and project agencies, however, regularly require IT liability cover with a fixed minimum sum
- **Biggest risk:** Programming, consulting and administration errors that cause downtime and data loss at the client
- **Basic cover from:** around 300 euros a year for a freelancer's IT liability cover
- **Statutory accident insurer:** VBG (the Berufsgenossenschaft for administrative professions), compulsory with employees; freelancers can join voluntarily
- **Often forgotten:** Contractual promises such as availability guarantees and contractual penalties are usually not insured
- **WZ 2025 / NACE:** 58.21 Verlegen von Computerspielen, 58.29 Verlegen von sonstiger Software, 62.10 Programmierungstätigkeiten, 62.20 Erbringung von Dienstleistungen der IT-Beratung sowie des Betriebs von Datenverarbeitungseinrichtungen, 62.90 Erbringung von sonstigen Dienstleistungen der Informationstechnologie

## What goes wrong in this trade

- **Faulty software:** A bug in the till system, a wrong rounding rule in the invoicing software or a faulty update costs the client revenue, rework and trust.
- **Data loss:** A migration script deletes client data and the backup had been broken for weeks. Recovery and extra costs quickly reach six figures.
- **Administration:** Missed patches, wrongly set permissions or a security update that was never installed open the door to attackers in the client's network.
- **Third party rights:** Third party code, libraries with the wrong licence or images in an app lead to formal cease and desist letters (Abmahnungen) and damages for copyright and trade mark infringement.
- **An attack on you:** If you hold remote maintenance access to many clients, you are a worthwhile target. One compromised account opens every client network at once.
- **Hardware at the client's site:** A server slips out of the rack during installation, or a water pipe is drilled while laying cables.

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

## The insurance you need

- **Professional indemnity** (Essential): IT liability cover pays your clients' financial losses from programming, consulting and administration and defends unjustified claims. https://www.nammert.com/en/insurance-broker-professional-indemnity.php
- **Cyber insurance** (Essential): Covers your own costs after an attack: forensics, recovery, downtime and reporting duties. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Business liability** (Strongly advised): For injury and property damage at the client's site; good IT tariffs combine both in one policy. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Electronic equipment** (Strongly advised): Replaces servers, laptops and test devices after breakage, power surges and theft. https://www.nammert.com/en/insurance-broker-electronic-equipment.php
- **Occupational disability** (Strongly advised): For freelancers the most important private cover, because without your ability to work there is no income. https://www.nammert.com/en/insurance-broker-occupational-disability.php
- **D&O insurance** (Depends on the business): For managing directors of a software company who are personally liable for bad decisions and inadequate IT security. https://www.nammert.com/en/insurance-broker-directors-and-officers.php
- **Business legal expenses** (Depends on the business): For disputes over acceptance, fees and employment contracts, which are common in software projects. https://www.nammert.com/en/insurance-broker-business-legal-expenses.php

## What it costs: example prices

The premium depends on turnover, activity and the sum insured. Administration and work close to data centres cost more than pure consulting or web development.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Professional indemnity | IT freelancer, turnover 80,000 euros, 500,000 euros for financial loss with public liability | around 300 to 900 euros a year |
| Professional indemnity | Software company with ten staff, turnover 1.5 million euros, 2 million euros cover | around 2,500 to 6,000 euros a year |
| Cyber insurance | Sole trader up to 70,000 euros turnover, 100,000 euros cover | around 300 to 500 euros a year |
| Electronic equipment | Servers, laptops and test devices worth 30,000 euros | around 150 to 450 euros a year |
| D&O insurance | Management of an IT GmbH, 1 million euros cover | around 600 to 1,500 euros a year |

For comparison: A freelancer's IT liability cover costs about as much a year as three to ten billed developer hours.

_Guide prices excluding German insurance premium tax, as of September 2026, from published tariff examples; the figures for the software company, electronics and D&O are guide values from our own quoting experience. We obtain the exact quote for you._

- [Finanzchef24: IT-Haftpflicht](https://www.finanzchef24.de/versicherung/it-haftpflicht)
- [Finanzchef24: Cyberversicherung](https://www.finanzchef24.de/versicherung/cyber-versicherung)

## Our suggestions: three packages

- **Freelancer** (Developer, admin or consultant without employees): Professional indemnity, Business liability. Together: around 300 to 900 euros a year
- **System integrator** (IT service provider with a team, remote maintenance and client networks): Professional indemnity, Business liability, Cyber insurance, Electronic equipment. Together: around 2,000 to 5,000 euros a year
- **Software company** (GmbH with its own products, development and a management team): Professional indemnity, Business liability, Cyber insurance, Electronic equipment, D&O insurance, Business legal expenses. Together: around 5,000 to 12,000 euros a year

## The worst day at a system integrator

Six things that really happen to IT service providers, all on a single Monday. Tap through the day and see who pays.

- 07:30: After your overnight update, a wholesaler's stock management system will not start. Two days without shipping. (€80,000, Paid by: Professional indemnity)
- 09:45: During a data migration for a CRM client, contacts were deleted and the backup was broken. Re-entry and extra costs. (€98,000, Paid by: Professional indemnity)
- 11:20: During installation in the client's server room a server slides off its rails and damages the unit next to it. (€12,000, Paid by: Business liability)
- 13:50: Your remote maintenance account has been taken over. Forensics, password changes at 40 clients and three days of emergency operation. (€35,000, Paid by: Cyber insurance)
- 16:10: Power surge after a lightning strike: the test server and two workstations in the office are destroyed. (€14,000, Paid by: Electronic equipment)
- 18:30: A client refuses acceptance and payment of a project, and you sue for the final instalment. (€9,000, Paid by: Business legal expenses)

**Damage so far:** €248,000

## Practical tips from your broker

- Describe your activities precisely: development, administration, hosting, consulting and training are insured separately in many tariffs.
- Choose at least 500,000 euros for financial loss, and often 1 to 3 million euros for contracts with large corporations, as the framework agreement requires.
- Make sure infringements such as copyright, trade mark and data protection violations are included.
- Negotiate liability caps and exclude lost profit in your contracts where possible; no insurer pays contractual penalties.
- Check for worldwide cover if your software runs abroad or you work for clients in the USA.
- Protect your own access to client networks with multi-factor authentication; many cyber insurers ask about this before accepting you.

## Why NAMMERT for your business

- **We read IT clauses closely:** As a broker we compare several insurers and check that your activities, infringements and cover abroad are really written into the policy.
- **Claims handling first hand:** In boat insurance we settle claims ourselves. We know how to report a claim so that the insurer quickly provides forensics and a lawyer.
- **Company and private together:** IT liability, cyber, company cars, income protection and pensions are looked after in one place.
- **Family business since 1989:** Free of charge for you, as the insurer pays our commission. You have fixed contacts, not just a customer portal.

## FAQ

### What is the difference between IT liability and public liability?

Public liability pays for injury and property damage. IT liability also pays pure financial losses, such as a client's lost revenue after a programming error. For IT service providers it is the more important part.

### What does IT liability insurance cost?

For freelancers, sound tariffs start at around 300 euros a year and go up to a few thousand euros depending on turnover and sum insured. Software companies with a team usually pay several thousand euros.

### Do I need my own insurance as a freelancer working through an agency?

Yes, project agencies usually require proof of your own IT liability cover with a minimum sum. The agency's policy generally only protects its own employees.

### Are cease and desist letters over open source licences covered?

If infringements are included, the insurer handles the defence and pays justified claims. Deliberate infringements are never insured.

### Does the insurer pay availability guarantees from my SLA?

Generally not. Promises beyond statutory liability, contractual penalties and flat-rate damages are excluded.

### Is cyber insurance more expensive for IT firms?

Often yes, because IT service providers with access to many clients carry a higher risk. Multi-factor authentication, off-site backups and documented patching lower the premium.

## 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-it-services.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.