Are insurances mandatory?
In addition to the legally required health insurance and the registration at the responsible Berufsgenossenschaft, no insurance is required in Germany. But every founder of a new business should consider which company insurances make sense for his company. The aim is to identify major company-specific risks and to cover them with the appropriate company insurance.
Important: Find out in detail the scope of cover and the way premiums are calculated for each insurance class. Do not take out underinsurance or over insurance.
Where can major damage occur?
Threats for startups are numerous. A production stop or a machine damage would be a major financial burden for a newly formed entity. It does not make sense to insure all risks. Evaluate the risks in terms of impact (catastrophic, large, medium and small risk) and their probability of occurrence (frequent, rather rare, very rare) – in practice, your subjective assessment is usually sufficient.
Tip: Check from time to time whether your insurance policies still cover the risk.
What kind of insurances are available?
The most important company insurance policies are:
Betriebs-Haftpflichtversicherung - professional liability insurance: for claims for damages by third parties, e.g. customers, suppliers, visitors and employees
Vermögensschadenversicherung - property damage insurance: for the personal liability of GmbH managing directors and AG board members in particular
Rechtschutz - legal protection: it covers costs arising from legal disputes. For example, it reimburses legal fees and legal costs
Firmen-Inhaltsversicherung - company contents insurance: protects your technical and commercial business equipment, including all goods and invetory, against fire, burglary, natural disasters and more.
Elektronikversicherung (Cyber-Versicherung) - cyber insurance: e.g. for costs for the re-entry of data as well as maintenance of business operations after virus or cyber attacks.
Further business insurances are available. In more complicated cases, involve a specialist in the relevant field. Always obtain several offers and consider whether there are other ways to avert risks.
Where can I get help finding the right protection?
The research process is difficult and time-consuming. Hence it can be advisable to get professional help from experts – We at M&M Consultants have a broad network of independent insurance specialists. They are not committed to any insurance company and will find the right protection for your company. Contact us and receive a free consultation!
