# Insurance for pawnshops and pawnbrokers in Germany

> Pawnshops and pawnbrokers in Germany lend money against jewellery, watches, electronics or cars and keep the pledges until they are redeemed or auctioned. So every pawnshop holds other people's valuables. German law therefore requires the pledges to be insured. This page explains what is compulsory, what else to insure and what it costs.

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

## Is it enough to insure the pledges for the amount I have lent?

No. § 8 of the Pawnbrokers Ordinance requires at least twice the loan amount, against fire, water damage, burglary and robbery. If you have €400,000 on loan, you need at least €800,000 of cover for the pledges. Also make sure you meet the insurer's security requirements for safe and alarm, otherwise a claim may be reduced.

## At a glance

- **Compulsory:** Under § 8 of the Pawnbrokers Ordinance (Pfandleiherverordnung) pledges must be insured for at least twice the loan amount against fire, water damage, burglary and robbery
- **Licence:** Pawnbroking needs a permit under § 34 of the Trade Regulation Act; it is refused, among other reasons, if the necessary funds or securities cannot be shown
- **Biggest risk:** Robbery or burglary in which many customers' pledges are lost at once
- **Basic cover from:** about €2,500 a year to insure the pledges of a small pawnshop, a guide figure from our own quoting work
- **Often forgotten:** The sum insured must grow with the loan book, especially in busy months

## What goes wrong in this trade

- **Armed robbery:** Robbers during opening hours, staff in shock, safe and displays emptied.
- **Burglary:** The strongroom is broken into at night, and you owe customers their pledges.
- **Fire and water:** A fire or burst pipe damages watches, electronics and furs in storage.
- **Underinsurance:** The loan book grows faster than the sum insured, leaving a gap after a loss.
- **Stolen goods as pledges:** Police seize a pledge that turns out to be stolen, and the loan is lost.
- **Customer data:** Pledge records, ID data and loans are stored digitally and attract attackers.

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

## The insurance you need

- **Business contents** (Essential): Insures the pledges for at least twice the loan amount against fire, water, burglary and robbery, as § 8 of the Pawnbrokers Ordinance requires, plus your own fittings. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Business liability** (Strongly advised): Covers injury and property damage to customers on your premises. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Business interruption** (Strongly advised): After a robbery or fire the shop often stays closed while costs continue. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Cargo insurance** (Strongly advised): Covers pledges on the way to the auctioneer, valuer or external storage. https://www.nammert.com/en/insurance-broker-cargo-insurance.php
- **Cyber insurance** (Strongly advised): Covers attacks on your loan management system and customer data. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Group accident insurance** (Depends on the business): Extra benefits for staff injured in a robbery, on top of statutory accident insurance. https://www.nammert.com/en/insurance-broker-group-accident.php

## What it costs: example prices

Premiums depend mainly on the value of pledges, their type and your security systems. Gold and watches cost more than electronics; a certified safe lowers the premium.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business contents | Pledges insured for €800,000, certified safe, monitored alarm | about €2,500 to €6,000 a year |
| Business contents | Large pawnshop insured for €3 million including car pawns | about €8,000 to €20,000 a year |
| Business liability | Pawnshop with three employees | about €250 to €600 a year |
| Cyber insurance | Digital loan management, €250,000 cover | about €500 to €1,200 a year |

For comparison: Insuring the pledges of a small pawnshop costs about as much a year as the interest on a handful of larger jewellery loans.

_Guide figures from our own quoting work, October 2026, excluding German insurance premium tax. The linked sources support the legal statements on this page, not the prices._

- [Gesetze im Internet: § 8 Pfandleiherverordnung, insurance](https://www.gesetze-im-internet.de/pfandlv/__8.html)
- [Gesetze im Internet: § 34 GewO, pawnbroking](https://www.gesetze-im-internet.de/gewo/__34.html)
- [Gesetze im Internet: § 2 SGB VII, insured persons](https://www.gesetze-im-internet.de/sgb_7/__2.html)

## Our suggestions: three packages

- **Compulsory cover** (small pawnshop with jewellery and watches): Business contents, Business liability. Together: about €2,800 to €6,600 a year
- **Pawnshop** (business with staff, auctions and digital records): Business contents, Business liability, Business interruption, Cyber insurance, Cargo insurance. Together: about €5,000 to €12,000 a year
- **Several branches** (pawnbrokers with branches and car pawns): Business contents, Business liability, Business interruption, Cyber insurance, Cargo insurance, Group accident insurance. Together: tailored, usually from about €15,000 a year

## The worst day in the pawnshop

Five things that really happen to pawnbrokers, here on a single day. Tap through and see who pays.

- 06:40: The alarm reports a break in; the room with electronics pledges is empty. (€35,000, Paid by: Business contents)
- 10:30: A customer slips on the wet entrance step. (€4,000, Paid by: Business liability)
- 13:15: Two robbers threaten your employee and take gold jewellery from the safe. (€120,000, Paid by: Business contents)
- 13:30: Your employee is injured in the robbery and off work for weeks. (€8,000, Paid by: Group accident insurance)
- 14:00: The shop stays closed for a week after the robbery. (€9,000, Paid by: Business interruption)

**Damage so far:** €176,000

## Practical tips from your broker

- Check every month that the sum insured is at least twice the amount on loan.
- Meet the insurer's security requirements for safe class, alarm and monitoring exactly and keep service records.
- Have pledges outside the safe, in displays or at the auctioneer, expressly included.
- Train staff on how to behave in a robbery and keep little cash at the counter.
- Store pledge records and customer data securely and separately from the till system.

## Why NAMMERT for your business

- **We know the compulsory sum:** We calculate the sum insured from your loan book and make sure all four perils of the Pawnbrokers Ordinance are covered.
- **Security requirements in view:** Safe, alarm and monitoring decide premium and claims payments. We compare the requirements of different insurers.
- **Family run since 1989:** Norman Nammert arranges your cover as an insurance broker, in English if you prefer. Our work is free for you; the insurer pays our commission.

## FAQ

### Does a pawnshop in Germany have to insure the pledges?

Yes. Under § 8 of the Pawnbrokers Ordinance, for at least twice the loan amount against fire, water damage, burglary and robbery.

### Do I need a licence?

Yes, a permit under § 34 of the Trade Regulation Act. It is refused if you lack reliability or cannot show the necessary funds or securities.

### What does insuring the pledges cost?

For a sum insured of €800,000 about €2,500 to €6,000 a year, depending on pledge type and security, a guide figure excluding premium tax.

### Are my employees covered in a robbery?

Employees are covered by statutory accident insurance under § 2 of Social Code Book VII. Group accident insurance can pay extra benefits.

### What if my loan book grows?

The sum insured must grow with it. A regular adjustment or a reserve sum in the policy keeps you covered.

## 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-pawnshop.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.