If you want to adequately insure your subsidiary or company in Germany against everyday business losses, you can rely on the following 5 important commercial insurance policies.
Do you have a company, a craft business, a workshop, a catering business, or a doctor’s surgery? Do you employ several people? Or do you work with sensitive technology or expensive IT systems in your business? Do you need to ensure the protection of important customer data? The higher the value of a system or machine, the more important it is to obtain adequate insurance coverage.
1. Public liability insurance in Germany
How quickly can damage occur to a customer? If the customer asserts a claim for damages, this is where public liability insurance comes in. It examines the claim asserted by the injured party, compensates the damage incurred and also supports the policyholder in legal proceedings if the injured party’s claim requires legal clarification. The amount of damage to be insured depends on the policyholder’s profession and the type of business. We therefore recommend a precise risk analysis of your company so that you do not have to suffer existential hardship in the event of a claim, because according to German law, every entrepreneur is liable with all his assets in the event of a claim.
2. Business contents insurance in Germany
This insurance covers all relevant contents of the business. This includes machinery, IT systems, equipment and furniture, as well as all important equipment that is essential for the business. If damage is caused by fire, water, storm, theft or even gross negligence in the operation of the machinery, the insurance will cover the damage incurred. It is important to ensure that the insurance covers the replacement value of the damaged equipment and not just the current value. This is because with expensive machines, for example, a total loss can result in a large difference in the reimbursement amount. If the machine has a current value of 30,000 euros at the time of the damage but a replacement value of 100,000 euros, a loss of 70,000 euros can result if the right tariff for contents insurance has not been selected.
Business contents insurance also protects if an employee has operated a company system incorrectly due to gross negligence. This can be very important if the machine to be operated is expensive and sensitive. The equipment should also be adequately insured. This also applies to restaurateurs who have patio furniture. Chairs are often stolen at night. This can become very expensive over time.
3. Business interruption insurance in Germany
The main purpose of business interruption insurance is to cover the loss of profit during the period of business interruption. This includes the profits that the company would have made if the interruption had not occurred. The insurance covers the ongoing, fixed operating costs, such as rent, salaries, leasing rates and other fixed costs that continue to be incurred even if the business is at a standstill. Additional operating costs incurred due to the business interruption, such as the rental of temporary premises or the purchase of replacement machinery, are also covered by business interruption insurance.
What damage is covered by business interruption insurance?
Damage caused by fire, explosions and natural disasters
Most policies cover damage caused by fire, explosions, floods, earthquakes and other natural disasters that result in business interruption.
Technical damage:
Damage to machinery or technical equipment that interferes with operations may also be covered.
Supply interruptions:
If the interruption is due to the failure of electricity, water or gas supplies, these may also be covered.
Damage caused by sabotage and vandalism:
Some policies also provide cover against business interruption caused by sabotage or vandalism. Ask your insurance broker whether such an additional tariff makes sense in your case.
Pandemics and epidemics:
Depending on the specific policy, loss of earnings due to pandemics or epidemics may also be covered, although this is often an option that needs to be added on.
It is important that you discuss with your insurance broker how much your inventory is worth and how much turnover you generate. If you have a high turnover with a small inventory, you should choose completely different insurance cover than entrepreneurs with expensive equipment. This is because business interruption insurance pays out the difference between turnover and cost of goods sold. So you should take out adequate insurance coverage for these cases.
4. Trade license protection in Germany
If an employee of a company causes damage to a customer, this can often involve large sums of money in the event of major damage. If a lawyer has to be instructed because the legal situation is not clear, the trader will incur much higher legal fees or court costs. Without insurance cover, a business owner can quickly run out of steam if he has to pay lawyers and court costs out of his own pocket. More about commercial legal protection: Corporate legal protection insurance.
5. Cyber insurance in Germany
This insurance protects you against damage caused by hacker attacks, malware, data theft and defamation on the Internet. It compensates for financial losses incurred and also supports you financially if legal action has to be taken. Unfortunately, cyber insurance is still not taken seriously enough by many people, even though every second user is now affected by cybercrime. The damage can run into the millions, especially for companies. If you consider that cyber insurance can be taken out from around 200 euros a year, this insurance can offer valuable protection. It is important to carry out a precise risk analysis of the IT system with the insurance broker. So that there is no underinsurance or overinsurance.