# Insurance for machinery and plant engineering firms in Germany

> As a machine builder you are not liable for a single part but for what your plant does at the customer's site: the stopped production line, the spoiled material, the cost of removing and refitting. Add installation work on other people's premises and a machine park of your own that everything depends on. This page shows how to cover all of that in Germany and what it costs.

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

## Does our general liability pay if our machine brings the customer's production to a halt?

Standard general liability pays for injury and property damage. If the customer's line simply stops and nothing is physically broken, that is a pure financial loss, and in Germany it is only covered by extended product liability (erweiterte Produkthaftpflicht). That is where the building blocks you need sit: removal and refitting costs, further processing, and the machinery clause for products made by your plant. Without them, you pay yourself.

## At a glance

- **Compulsory:** No statutory insurance for the business itself; motor liability for company vehicles, and many customers write extended product liability into the contract
- **Biggest risk:** Financial losses at the customer when your machine breaks down or produces faulty goods
- **Basic cover from:** around €400 a year for the general liability of a small contract manufacturer, considerably more with extended product liability
- **Berufsgenossenschaft:** BG Holz und Metall (BGHM), the statutory accident insurer for wood and metal; membership is compulsory as soon as you employ staff
- **Often forgotten:** Installation at a customer's site abroad and damage to the plant during the test run
- **WZ 2025 / NACE:** 28.11 Herstellung von Verbrennungsmotoren und Turbinen, ohne Motoren für Luft- und Straßenfahrzeuge, 28.12 Herstellung von hydraulischen und pneumatischen Komponenten und Systemen, 28.13 Herstellung von sonstigen Pumpen und Kompressoren, 28.14 Herstellung von sonstigen Armaturen, 28.15 Herstellung von Lagern, Getrieben, Zahnrädern und Antriebselementen, 28.21 Herstellung von Öfen, Brennern und ortsfesten Heizgeräten für den Haushalt, 28.22 Herstellung von Hebezeugen und Fördermitteln, 28.23 Herstellung von Büromaschinen, ohne Datenverarbeitungsgeräte und periphere Geräte, 28.24 Herstellung von handgeführten Werkzeugen mit Motorantrieb, 28.25 Herstellung von kälte- und lufttechnischen Erzeugnissen, nicht für den Haushalt, 28.29 Herstellung von sonstigen nicht wirtschaftszweigspezifischen Maschinen a. n. g., 28.30 Herstellung von land- und forstwirtschaftlichen Maschinen, 28.41 Herstellung von Werkzeugmaschinen für die Metallbearbeitung, 28.42 Herstellung von sonstigen Werkzeugmaschinen, 28.91 Herstellung von Maschinen für die Metallerzeugung, von Walzwerkseinrichtungen und Gießmaschinen, 28.92 Herstellung von Bergwerks-, Bau- und Baustoffmaschinen, 28.93 Herstellung von Maschinen für die Nahrungs- und Genussmittelerzeugung und die Tabakverarbeitung, 28.94 Herstellung von Maschinen für die Textil- und Bekleidungsherstellung und die Lederverarbeitung, 28.95 Herstellung von Maschinen für die Papiererzeugung und -verarbeitung, 28.96 Herstellung von Maschinen für die Verarbeitung von Kunststoffen und Kautschuk, 28.97 Herstellung von Maschinen für die additive Fertigung, 28.99 Herstellung von Maschinen für sonstige bestimmte Wirtschaftszweige a. n. g., 33.12 Reparatur und Instandhaltung von Maschinen, 33.18 Reparatur und Instandhaltung von militärischen Kampffahrzeugen, Luft- und Raumfahrzeugen sowie Kriegsschiffen, 33.19 Reparatur und Instandhaltung von sonstigen Ausrüstungen, 33.20 Installation von Industriemaschinen und -ausrüstungen

## What goes wrong in this trade

- **The machine turns out scrap:** A badly set control or a design error lets faulty parts run at the customer's plant for days. Material, labour and late delivery quickly add up to six figures.
- **Installing on someone else's site:** During assembly a component drops from the crane, or a fitter damages the hall ceiling or one of the customer's pipes. It often happens far from your own works, sometimes abroad.
- **Breakdown in your own works:** A spindle failure on the machining centre or a short circuit in the control cabinet stops production. No fire or burglary is involved, so contents insurance does not pay.
- **Injury caused by your plant:** If a safety guard is missing or the operating manual has gaps, an operator at the customer's site gets hurt. Then the public prosecutor and the liability insurer look at the case at the same time.
- **Attack on design data:** CAD files, control programs and remote maintenance access are a popular target. One encrypted server halts design and production together.
- **Accidents at machine tools:** Crushing at presses, cuts, heavy loads: machine building is one of the sectors with many reportable workplace accidents.

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

## The insurance you need

- **Business liability** (Essential): With extended product liability, installation risk and cover abroad, because your plants stand at customers whose losses go far beyond the value of the machine. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Business contents** (Essential): Replaces machine tools, raw material and part-built plants at new value after fire, storm, burst pipes and burglary. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Machinery breakdown** (Strongly advised): Pays for repair or replacement when machining centres, presses or cranes fail through operator error, short circuit or material defects. https://www.nammert.com/en/insurance-broker-machinery-breakdown.php
- **Business interruption** (Strongly advised): Covers wages, fixed costs and lost profit when production is restricted for months after a fire or machinery breakdown. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Cyber insurance** (Strongly advised): Helps with data recovery, forensics and lost income when design, ERP or remote maintenance systems are attacked. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Cargo insurance** (Depends on the business): Insures machines and assemblies on the way to the customer, including overseas shipments and heavy haulage. https://www.nammert.com/en/insurance-broker-cargo-insurance.php
- **D&O insurance** (Depends on the business): Protects the managing directors of a GmbH (limited company) when they are accused of breaching duties on contracts, compliance or export control. https://www.nammert.com/en/insurance-broker-directors-and-officers.php
- **Group accident insurance** (Depends on the business): Adds to the statutory accident insurer for fitters who travel a lot, and helps when you are recruiting skilled staff. https://www.nammert.com/en/insurance-broker-group-accident.php

## What it costs: example prices

For machine builders the premium depends on turnover, export share, the type of plant and the building blocks of product liability. If you deliver to the USA or build plants for the food or car industry, expect to pay noticeably more.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business liability | Small contract manufacturer, turnover around €100,000 to €300,000, €3 million cover | around €350 to €1,200 a year |
| Business liability | Special machine builder with 20 staff, extended product liability, exports within the EU | around €3,000 to €8,000 a year |
| Business contents | Machines, material and stock worth €1.5 million | around €1,500 to €3,500 a year |
| Machinery breakdown | Stationary machine park with a new value of €800,000 | around €2,500 to €6,500 a year |
| Business interruption | Loss of income after property damage and machinery breakdown, twelve month indemnity period | around €800 to €2,500 a year |
| Cyber insurance | Firm with around €3 million turnover and remote maintenance | around €1,200 to €3,000 a year |

For comparison: For a special machine builder, liability with extended product liability plus contents insurance costs about as much a year as one week of commissioning with two service engineers at the customer's site.

_Guide figures excluding German insurance tax, as of September 2026. General liability is based on published tariff examples; machinery, contents and cyber are guide figures from our own quoting. Machinery insurance is priced per mille of the sum insured; we obtain the exact quote for you._

- [berufshaftpflichtversicherung-experten.de: Betriebshaftpflicht Maschinenbau](https://berufshaftpflichtversicherung-experten.de/betriebshaftpflicht-maschinenbau/)
- [betriebshaftpflicht-24.de: Betriebshaftpflicht für Maschinenbau-Unternehmen](https://www.betriebshaftpflicht-24.de/betriebshaftpflicht-angebote/maschinenbau-unternehmen-betriebshaftpflichtversicherung/)
- [Versicherungen.org: Maschinenversicherung, Beitragsbeispiele](https://www.versicherungen.org/wiki/Maschinenversicherung,_Beitragsbeispiele)

## Our suggestions: three packages

- **Workshop** (Contract manufacturers and small firms making parts to drawing): Business liability, Business contents. Together: around €700 to €2,000 a year
- **Production** (Machine builders with their own machine park and installation at customers' sites): Business liability, Business contents, Machinery breakdown, Business interruption. Together: around €6,000 to €15,000 a year
- **Plant engineering** (Plant builders with exports, remote maintenance and GmbH management): Business liability, Business contents, Machinery breakdown, Business interruption, Cyber insurance, Cargo insurance, D&O insurance. Together: around €12,000 to €30,000 a year

## The worst day in machine building

Six losses that really happen in machine building firms, all packed into one Wednesday. Tap through the day and see which policy pays.

- 06:45: After a programming error the spindle of the big machining centre seizes. Repair and a replacement spindle. (€38,000, Paid by: Machinery breakdown)
- 09:20: Your packaging line at a customer's plant has been sealing at the wrong temperature for a week. 60,000 packs are scrap. (€95,000, Paid by: Business liability)
- 11:10: During installation in someone else's hall a control cabinet slides off the forklift and tears off a sprinkler pipe. (€24,000, Paid by: Business liability)
- 13:30: The server holding all the CAD data is encrypted. Design and production planning stand still for three days. (€42,000, Paid by: Cyber insurance)
- 15:50: An assembly tips over on the lorry to the customer because the load was badly secured. (€31,000, Paid by: Cargo insurance)
- 22:40: A smouldering fire in the paint booth destroys the booth, the paint stock and two nearly finished plants. (€280,000, Paid by: Business contents)

**Damage so far:** €510,000

## Practical tips from your broker

- Agree extended product liability on the German insurers' association model with every building block, including the machinery clause and inspection and sorting costs.
- Choose at least €5 million cover; customers in the car industry often ask for €10 million or more.
- Have installation, commissioning and test runs at the customer's site expressly included, also outside Germany.
- Check deliveries to the USA and Canada separately: different limits apply there, and lawyers' fees are often counted against the sum insured.
- Insure the machine park at new value and update the list every year, otherwise you risk underinsurance after a new purchase.
- Align your terms of sale with the policy: liability caps and warranty promises to customers are only partly insurable.

## Why NAMMERT for your business

- **We read product liability block by block:** The price gap between two quotes often lies in the removal and refitting costs or the machinery clause. As a broker we put the wordings of several insurers side by side for you.
- **We know claims handling from the inside:** In boat insurance we settle claims ourselves. We use that experience when causation and amounts are disputed after a production stoppage at your customer's site.
- **Works, installation and management in one place:** We arrange liability, machinery, transport and D&O together so no gap opens up between the policies.
- **A family business since 1989:** Like many engineering firms, you want one contact who knows your business, and you can talk to us in English. Our work costs you nothing; the insurer pays our commission.

## FAQ

### Is product liability included in general liability?

Basic product liability for injury and property damage usually is. Extended product liability for financial losses at the customer, such as removal, refitting and scrap, has to be agreed expressly.

### What is the difference between contents and machinery insurance?

Contents insurance pays for fire, burst pipes, storm and burglary. Machinery insurance pays for damage from inside and through operation, such as a short circuit, a material defect or a collision inside the machine.

### What does insurance cost for a machine building firm?

A small contract manufacturer starts at around €350 a year for general liability. A special machine builder with 20 staff usually pays €6,000 to €15,000 in total for liability, contents, machinery and business interruption.

### Are we covered when we install a plant abroad?

Only if the policy includes losses abroad and installation work. Europe is often included; worldwide cover, and the USA and Canada in particular, must be agreed separately.

### What changes with the new EU Machinery Regulation?

It applies from 20 January 2027 and sets higher requirements for safety, software and documentation. If you cannot prove conformity properly, your position after a loss is weaker; insurance does not replace the documentation.

### Do we need product recall insurance?

If you supply series parts or components in large numbers, yes. Recall costs are not included in general liability and are insured as a separate building block.

## 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-machinery.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.