# Business contents insurance in Germany: what foreign founders need to know > In Germany, a business insures its furniture, equipment, machinery and stock through an Inhaltsversicherung, separate from the building and separate from liability. Cover is usually built on named perils: fire, burglary, burst pipes, storm and hail. If you are used to an all-in-one business owner's policy from the US or a UK package, expect to assemble the pieces yourself. Quelle/Source: https://www.nammert.com/en/insurance-broker-business-contents.php Updated: 2026-09-18 ## Is business contents insurance required in Germany? Not by law, but very often by contract. Most German commercial leases (Gewerbemietvertrag) require the tenant to insure their own contents, and leasing companies require cover for financed equipment. The landlord's building insurance never covers your fit-out, stock or computers. For any business with more assets than it could replace from cash reserves after a fire, it is one of the first policies to put in place. ## At a glance - **Mandatory?:** No, but commonly required by commercial leases and lessors - **Standard perils:** Fire, burglary, water from pipes, storm and hail - **Key figure:** Sum insured at replacement value of all business contents - **Underinsurance:** Proportional reduction under § 75 VVG - **Flood and heavy rain:** Not standard, add natural hazards (Elementar) cover ## How it differs from what you may know German commercial property insurance is traditionally split by peril and by object. Contents (Inhalt) and building (Gebäude) are separate policies, business liability (Betriebshaftpflicht) is another one, and business interruption can be a clause inside the contents policy or a policy of its own. Package products exist, but they still list each element with its own sum. Flood, heavy rain, backflow from sewers and earthquake are not part of the standard perils. They come as an add-on called Elementarschadenversicherung, and in high-risk zones only with a deductible or not at all. Many newcomers assume storm cover includes water entering during a storm; in Germany it does not. ## The underinsurance rule works like the UK average clause If the sum insured is noticeably lower than the replacement value of your contents, the insurer pays only the same proportion of every claim (§ 75 of the Insurance Contract Act, VVG). Insure 100,000 euros of contents worth 200,000 and a 20,000 euro water loss pays 10,000. This applies to partial losses too. Better policies waive this rule if you follow the insurer's valuation method, or include a margin for new purchases during the year. Growing businesses should review the sum at least once a year, and always after buying major equipment or increasing stock. ## Paperwork, language and obligations Policy documents are in German, and the German text is what counts in a dispute. Some insurers provide English translations for information only. Obligations (Obliegenheiten) such as keeping the alarm switched on, locking the premises and reporting a change of business activity are taken seriously; breaching them can reduce or remove the claim payment. Contracts usually run for one year and renew automatically unless cancelled with three months' notice before the renewal date. After a claim, both sides can usually cancel. Long terms with a discount are common, so check the end date before you sign. ## What is covered - Furniture, fixtures and shop fit-out owned by the business - Machinery, tools, office and technical equipment - Stock, raw materials and finished goods - Fire, lightning, explosion and aircraft impact - Burglary, robbery and vandalism following a break-in - Water escaping from pipes and sprinkler systems, depending on the policy - Storm (wind force 8 and above) and hail - Clean-up, removal and lock replacement costs - Customer property and goods on commission, if included ## What is not covered - The building itself, which is insured by the owner - Shoplifting and simple theft without forced entry - Flood and heavy rain unless natural hazards cover is added - Breakdown of electronics without an external cause, which needs electronic equipment insurance - Registered motor vehicles - Loss of income, unless business interruption is included ## Who needs it - Retailers with a shop and stock - Tradespeople with tools, machinery and materials - Practices, law firms and agencies with office equipment - Restaurants and cafés with kitchen equipment and supplies - Any tenant whose commercial lease requires contents cover ## Who can do without - Freelancers working mainly from a laptop and phone they could replace from savings ## What it costs Premiums are calculated as a rate per thousand euros of sum insured. The rate depends mostly on the type of business: an accounting office is a very different fire risk from a carpentry workshop. There are no reliable published price ranges for German business contents insurance. **What drives the premium:** - Type of business and fire or burglary risk - Sum insured and share of stock - Location: postcode, burglary rates, flood zones - Security: alarm system, locks, safe - Building construction and fire protection - Deductible and optional extensions - Claims history _We do not quote typical prices because business risks vary too much. Your premium is known once we have a quote for your business._ ## The policy levels on the market - **Named perils, basic:** Fire, burglary, water and storm on standard terms with low sub-limits and no underinsurance waiver. - **Extended cover:** Adds power surge from lightning, higher cost limits, cover for new acquisitions, a small business interruption element and an underinsurance waiver. - **All risks:** Everything is covered unless excluded, and the insurer has to prove an exclusion applies. Common for higher values, mostly available through brokers. ## How to recognise a good policy | Criterion | Minimum standard | Strong policy | Why it matters | | --- | --- | --- | --- | | Underinsurance waiver | none | waiver if valued by the insurer's method | Without it, every claim is cut if the sum is too low. | | Gross negligence | insurer may reduce payment (§ 81 VVG) | no reduction up to the sum insured | A forgotten heater or open window is a typical case. | | New acquisitions | not included | automatic cover of 10 to 30 percent | New equipment is often bought before anyone updates the policy. | | Customer property | excluded | included with its own limit | You are liable for the customer's items in your workshop. | | Power surge | excluded | included up to the full sum | A nearby lightning strike destroys tills and servers without any fire. | | Goods in transit and off-site | not included | tools and stock at sites, fairs and in vehicles | Equipment is often away from the premises when something happens. | | Natural hazards | not included | included with a manageable deductible | Heavy rain damages businesses far away from rivers. | ## Insurers on the German market Most large German property insurers offer business contents cover for small and medium firms, either on its own or as part of a commercial package. Differences lie in the wording, not the brand. This list is a market overview. - **Allianz**: commercial lines through tied agents and brokers - **AXA**: commercial property for small and medium firms - **HDI**: part of the Talanx group, focus on businesses and professions - **R+V**: insurer of the German cooperative banks - **Zurich**: part of Zurich Insurance Group - **Gothaer**: commercial customers, agents and brokers - **Helvetia**: German branch of a Swiss insurer, broker distribution - **VHV**: broker-focused insurer with products for trades and retail - **SIGNAL IDUNA**: roots in skilled trades and retail 155 insurers supervised by BaFin, the German regulator, are licensed for this class of insurance. (Feuer, Sturm, Hagel-, Frost- und sonstige Sachschäden). Source: BaFin company database, retrieved 2026-09-18. Insurers from other EU countries selling through a branch or without a German office are not included. ## Typical claims and who pays - **Burglars force the back door** (around €5,000 to €30,000): Burglary with forced entry is the core of German contents cover. New locks are usually included up to a small limit. - **Customer pockets stock, no break-in** (a few hundred euros, more over a year): Without forced entry there is no burglary under German wordings. Shrinkage during opening hours stays with you. - **Heavy rain backs up the drains** (around €10,000 to €50,000 of stock): Sewer backflow counts as a natural hazard. It is only covered with the Elementar add-on, usually with a deductible. - **Lightning surge fries the tills** (around €2,000 to €10,000): Basic German cover pays for a direct strike only. Surge damage through the power line needs the extended wording. - **Heater left on next to boxes** (stockroom fire, easily five or six figures): That is gross negligence, and German law lets the insurer cut the payout in proportion. Good policies waive that cut. - **Trade fair stand is burgled** (samples and display kit, often four figures): Items away from your premises need off-site cover (Außenversicherung), usually with a lower limit. ## Myth or truth - „Any strong wind counts as a storm for a German insurer." ✘ No, German policies define storm as wind of at least force 8 on the Beaufort scale. Below that, a torn awning is your own cost. - „If burglars only smash your shop and take nothing, you are still covered." ✔ Yes, vandalism following a break-in is part of burglary cover. Broken displays and damaged stock count even if nothing was stolen. - „Forget to set the alarm, and a German insurer pays nothing at all." ✘ Not necessarily. The payout is cut according to how serious the lapse was, and it stays in full if the alarm would not have prevented the loss. You have to show that, though. - „In Germany, gross negligence often means a reduced payout rather than none." ✔ True, and this differs from many other countries. The Insurance Contract Act allows a cut in proportion to the fault, and better policies waive it up to the sum insured. - „Equipment you lease is automatically part of your contents cover." ✘ No, items you do not own are only covered if the policy includes third-party property. Leasing contracts often require you to insure the equipment, so check before you sign. ## Common mistakes - Assuming the landlord's insurance covers the tenant's fit-out and stock - Expecting flood and heavy rain to be included as in some other markets - Setting the sum insured once and never updating it - Signing a long-term contract without noticing the renewal and notice rules - Relying on an English translation instead of the binding German wording ## FAQ ### Does my landlord's insurance cover my shop fittings? Usually not. The landlord insures the building. Fittings you installed, your stock and your equipment are yours to insure through a contents policy. Check your lease: it often states exactly what the tenant must insure. ### Is flood damage covered by business contents insurance in Germany? Only if natural hazards cover (Elementarschaden) has been added. Standard perils do not include flood, heavy rain, backflow or earthquake. In high-risk zones cover may only be available with a high deductible. ### Can I get the policy in English? Some insurers provide English translations, but the German wording is legally binding. As your broker we explain the terms in English and point out clauses that matter for your business before you sign. ### What does replacement value mean in Germany? Neuwert: the cost of buying new items of the same kind and quality today. For stock it is the replacement cost, for goods you produce yourself the cost of production. Items no longer in use are often paid at their current value. ### Is shoplifting covered? No. German contents cover pays for burglary, meaning forced entry into locked premises, and for robbery. Theft during opening hours without force is excluded or covered only with very small limits. ### How do I cancel a German business insurance contract? In writing before the renewal date, usually with three months' notice. Contracts renew automatically for one year at a time unless another term was agreed. After a claim, both sides can usually cancel within a short period. ### Are my laptops covered? Against fire, burglary, water and storm on the premises, yes. Accidental damage, short circuits and theft away from the office need electronic equipment insurance or an off-premises extension. ### Does business contents insurance cover lost income? Not by itself. Some policies include a small business interruption element (Klein-BU) that pays lost profit and running costs after an insured loss. Larger firms need separate business interruption insurance. ## Legal basis and sources - [Insurance Contract Act (VVG, German)](https://www.gesetze-im-internet.de/vvg_2008/) - [BaFin company database (licensed insurers)](https://portal.mvp.bafin.de/database/InstInfo/) ## 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/insurance-broker-business-contents.php#anfrage --- 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.