# Insurance for metalworking, heat treatment and foundries in Germany

> Glowing metal, coolants, quenching baths and presses with a hundred tonnes of force: in metalworking, fire, pollution and serious accidents are not theory. On top of that, your parts end up inside other people's products, and one dimensional error can stop a whole series at the customer. Here is what protects you and what it costs.

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

## Who pays if coolant or quenching oil leaks into the ground?

Environmental liability pays for damage to neighbours and to waters, provided your installations are declared in the policy. If the authorities order the clean-up of soil on your own land, that is a separate building block: environmental damage insurance (Umweltschadensversicherung), and even that only covers your own land if it is expressly included. Many firms only find out after the loss.

## At a glance

- **Compulsory:** No statutory insurance; for installations holding substances hazardous to water you are liable under the German Water Resources Act (Wasserhaushaltsgesetz) even without fault
- **Biggest risk:** Fire from swarf, oils and molten metal, and series defects in supplied parts
- **Basic cover from:** around €500 a year for the general liability of a small turning shop
- **Berufsgenossenschaft:** BG Holz und Metall (BGHM), the statutory accident insurer for the sector, compulsory once you have staff
- **Often forgotten:** Environmental damage insurance for soil and groundwater on your own site
- **WZ 2025 / NACE:** 24.10 Erzeugung von Roheisen, Stahl und Ferrolegierungen, 24.20 Herstellung von Stahlrohren, Rohrform-, Rohrverschluss- und Rohrverbindungsstücken aus Stahl, 24.31 Herstellung von Blankstahl, 24.32 Herstellung von Kaltband mit einer Breite von weniger als 600 mm, 24.33 Herstellung von Kaltprofilen, 24.34 Herstellung von kaltgezogenem Draht, 24.41 Erzeugung und erste Bearbeitung von Edelmetallen, 24.42 Erzeugung und erste Bearbeitung von Aluminium, 24.43 Erzeugung und erste Bearbeitung von Blei, Zink und Zinn, 24.44 Erzeugung und erste Bearbeitung von Kupfer, 24.45 Erzeugung und erste Bearbeitung von sonstigen NE-Metallen, 24.46 Aufbereitung von Kernbrennstoffen, 24.51 Eisengießereien, 24.52 Stahlgießereien, 24.53 Leichtmetallgießereien, 24.54 Buntmetallgießereien, 25.21 Herstellung von Heizkörpern, Dampfkesseln und Kesseln zum Erzeugen von überhitztem Wasser, 25.22 Herstellung von Sammelbehältern, Tanks u. ä. Behältern aus Metall, 25.30 Herstellung von Waffen und Munition, 25.40 Herstellung von Schmiede-, Press-, Zieh- und Stanzteilen und pulvermetallurgischen Erzeugnissen

## What goes wrong in this trade

- **Swarf and oil catch fire:** Oily swarf in the skip, extraction systems and quenching baths are typical sources of fire. A fire in the hall quickly costs machines and months of production.
- **Dimensional errors in a series:** A wrongly turned bolt is only noticed at the customer's assembly line. Then it is about sorting, replacement and a stopped line.
- **Molten metal and explosion:** In a foundry, damp scrap in the furnace is enough for a steam explosion. Damage to furnace, hall and people follows within seconds.
- **Substances in the soil:** Coolants, acids, electroplating baths: leaking pipes or drip trays contaminate soil and groundwater.
- **Metal theft:** Copper, brass and stainless steel in the yard are in demand. Thieves arrive with a van and often take several tonnes.
- **Presses and loads:** Crushing, amputations, burns: the metal sector reports a particularly high number of serious workplace accidents.

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

## The insurance you need

- **Business liability** (Essential): With extended product liability for supplied parts and environmental liability for the oils, baths and tanks on your site. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Business contents** (Essential): Replaces machines, tools and material after fire, burst pipes, storm and burglary, including metal stocks in the yard. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Business interruption** (Strongly advised): Bridges wages and fixed costs when customers drift away and production stands still for a long time after a fire in the hall. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Machinery breakdown** (Strongly advised): Pays for breakdown of presses, furnaces, lathes and lasers, including damage through operator error. https://www.nammert.com/en/insurance-broker-machinery-breakdown.php
- **Commercial buildings** (Strongly advised): If you own the hall: fire, storm and snow load on large roofs are among the most expensive losses in the sector. https://www.nammert.com/en/insurance-broker-commercial-buildings.php
- **Group accident insurance** (Depends on the business): Pays on top of the statutory accident insurer, for example for permanent hand injuries, and off duty as well. https://www.nammert.com/en/insurance-broker-group-accident.php
- **Fleet insurance** (Depends on the business): For several vans and lorries you use to collect material and deliver parts. https://www.nammert.com/en/insurance-broker-fleet-insurance.php

## What it costs: example prices

Premiums in metal processing depend heavily on the process: a turning shop costs less than a heat treatment plant, a foundry considerably more than a stamping shop. Turnover, payroll and whether you supply the car industry matter too.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business liability | Small turning shop or metalwork shop, up to €300,000 turnover, €3 million cover | around €400 to €1,200 a year |
| Business liability | Supplier with 25 staff, extended product liability and environmental blocks | around €3,500 to €9,000 a year |
| Business contents | Machines and material worth €1 million | around €1,200 to €3,000 a year |
| Machinery breakdown | Presses and CNC machines with a new value of €600,000 | around €2,000 to €5,000 a year |
| Business interruption | Loss of income for twelve months, together with contents insurance | around €600 to €2,000 a year |

For comparison: Liability and contents insurance for a small turning shop cost about as much a year as two tonnes of round steel bar.

_Guide figures excluding German insurance tax, as of September 2026, taken from published tariff examples and our own quoting. Foundries and heat treatment plants are often above these ranges because of the fire risk. We obtain the exact premium from several insurers for you._

- [Finanzchef24: Versicherungen für Handwerker](https://www.finanzchef24.de/versicherung/handwerk)
- [berufshaftpflichtversicherung-experten.de: Betriebshaftpflicht Maschinenbau](https://berufshaftpflichtversicherung-experten.de/betriebshaftpflicht-maschinenbau/)
- [Versicherungen.org: Maschinenversicherung, Beitragsbeispiele](https://www.versicherungen.org/wiki/Maschinenversicherung,_Beitragsbeispiele)

## Our suggestions: three packages

- **Workbench** (Small turning, metalwork or grinding shop with a few machines): Business liability, Business contents. Together: around €800 to €2,200 a year
- **Supplier** (Series production with presses and CNC machines for industrial customers): Business liability, Business contents, Business interruption, Machinery breakdown. Together: around €6,000 to €16,000 a year
- **Foundry and heat treatment** (Firms with molten metal, baths and their own hall): Business liability, Business contents, Business interruption, Machinery breakdown, Commercial buildings, Group accident insurance. Together: around €15,000 to €40,000 a year

## The worst day in metal processing

Six losses that happen in turning shops, stamping plants and foundries, put together on one Thursday. Tap through and see who pays.

- 05:30: Overnight, burglars loaded two tonnes of copper offcuts and brass bars from the yard. (€18,000, Paid by: Business contents)
- 08:15: The customer reports that 40,000 sleeves have the wrong inner diameter. Sorting, replacement and two days of line stoppage. (€72,000, Paid by: Business liability)
- 10:40: The clutch of the big eccentric press breaks. The press is out for six weeks. (€46,000, Paid by: Machinery breakdown)
- 13:05: Coolant has seeped from a cracked drip tray into the neighbouring plot. Soil excavation and an expert report. (€35,000, Paid by: Business liability)
- 16:20: Oily swarf in the skip ignites. The fire spreads to the hall. (€420,000, Paid by: Business contents)
- 17:00: After the fire, production stops for four months while wages and lease payments carry on. (€260,000, Paid by: Business interruption)

**Damage so far:** €851,000

## Practical tips from your broker

- Declare every installation holding substances hazardous to water in your environmental liability, from the drip tray to the electroplating bath; undeclared installations are often not covered.
- Add environmental damage insurance and check whether damage to your own land is included.
- If you supply the car industry: extended product liability with inspection and sorting costs and at least €5 million cover.
- Insure metal stocks kept outdoors expressly against theft, otherwise cover often only applies inside a locked building.
- With furnaces, heat treatment plants and presses, machinery insurance belongs in the package; a single breakdown often costs more than a year's premium for the whole park.
- Set the indemnity period of your business interruption cover to at least 18 months: replacements for special machines and furnaces have long delivery times.

## Why NAMMERT for your business

- **Environmental cover set up properly:** Environmental liability, environmental damage and water damage liability are three different things. We sort them out for your installations and obtain quotes from several insurers.
- **Experience from settling our own claims:** In boat insurance we settle claims ourselves. We know which documents an insurer wants after a fire in the hall and where it likes to cut.
- **One contact for business and family:** Hall, machines, lorries, your staff's pensions and your own cover all come together with us, and we can handle it in English.
- **Family owned since 1989:** We are a family business, like many metalworking firms. Our work costs you nothing; the insurer pays our commission.

## FAQ

### Does a metalworking firm need environmental liability?

As soon as you store oils, coolants, acids or baths, yes. Under the German Water Resources Act you are liable for water pollution even without fault.

### Are dimensional errors covered by product liability?

No insurance replaces the faulty parts themselves. The follow-on costs at the customer, such as sorting, removal and refitting, can be insured through extended product liability.

### What does insurance cost for a turning shop?

General liability for a small turning shop starts at around €400 a year. With contents insurance, small firms usually pay between €800 and €2,200.

### Why is a foundry so expensive to insure?

Molten metal, moulding sand and large halls mean a high fire load, and damage to the furnace stops everything. Insurers therefore set fire protection conditions and charge higher premiums.

### Is stolen material in the yard covered?

Only if outdoor theft is agreed, usually with its own limit and conditions for fencing and lighting.

### Who pays if an employee is injured at the press?

The BG Holz und Metall, the statutory accident insurer, pays for treatment, rehabilitation and a pension. Group accident insurance can pay a lump sum on top.

## 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-metal-processing.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.