Professional Indemnity Insurance in Germany
Cover for the pure financial loss your advice or work can cost a client, with no injury or property damage involved. Independent §34d broker, English service from quote to claim.
Reviewed by the DigiCare broking team · Independent insurance broker under §34d GewO · Last reviewed May 2026
- Independent §34d insurance broker (Versicherungsmakler)
- Cover for pure financial loss (echte Vermögensschäden) only
- Verified German statutory minimums per claim
- English service from quote to claim
What is professional indemnity insurance in Germany?
Professional indemnity insurance in Germany, known in German as Vermögensschadenhaftpflichtversicherung (financial loss liability insurance), covers the pure financial loss a client suffers because of errors or negligence in the performance of your professional duties. It pays when your advice or work costs a client money, with no physical injury and no property damage involved.
The scope is deliberately narrow. German law calls this kind of loss an echter Vermögensschaden (pure financial loss): money lost on its own, not money lost because an object was damaged or a person was injured. A consulting mistake, a miscalculation or a missed filing deadline are the usual triggers, what German practice calls a Beratungsfehler (advice error). This cover sits inside the wider family of professional liability. The broad umbrella, Berufshaftpflicht, can also pay for bodily injury and property damage. Professional indemnity handles the money-only mistakes. We explain that difference, and where each one applies, further down the page.
What does it cover, and what it doesn't
Professional indemnity insurance pays for pure financial loss caused by advice errors, missed deadlines, and calculation mistakes, and it funds the defence of unjustified claims brought against you. It does not pay for anything you do on purpose, for knowing breaches of duty, or for losses that are not purely financial: bodily injury and property damage belong to business or professional liability cover instead. Two add-ons come up often: third-party cyber liability and loss of documents can usually be bundled in as optional extensions.
| Covered | Not covered |
|---|---|
| Advice and consulting errors (Beratungsfehler) | Wilful acts and criminal conduct |
| Missed deadlines (Fristversäumnis) | Knowing breaches of duty |
| Calculation and valuation errors | Bodily injury (goes to business/professional liability) |
| Defence of unjustified claims (passive legal protection) | Property damage and its consequential losses |
| Indemnification of justified claims | Contract-performance and penalty claims |
| Optional: third-party cyber liability, loss of documents | Anything that is not a pure financial loss |
Who must have it by law in Germany?
In Germany professional indemnity insurance is legally compulsory for several regulated professions, each with its own statutory minimum cover. For most other advisory freelancers and consultants it is voluntary, but strongly recommended once you advise clients on money. The mandatory cover sits within the wider professional liability insurance (Berufshaftpflicht) framework, but for these professions the law fixes a hard minimum per claim. For insurance intermediaries the figure is set at EU level and indexed: around €1.3 million per claim and around €1.92 million per year, regularly adjusted by EIOPA under the Insurance Distribution Directive (Delegated Regulation (EU) 2019/1935, in force from 12 June 2020). If you employ staff, your employer's policy usually covers them; sole practitioners carry their own.
| Profession | Statute | Minimum cover |
|---|---|---|
| Lawyers (Rechtsanwälte) | §51 BRAO | €250,000 per claim |
| Tax advisers (Steuerberater) | §67 StBerG / §52 DVStB | €250,000 per claim |
| Auditors (Wirtschaftsprüfer) | §54 WPO | €1,000,000 per claim |
| Insurance intermediaries | §34d GewO | ~€1.3 million per claim, ~€1.92 million per year |
| Notaries (Notare) | §19a BNotO | Compulsory (sum set per role) |
| Freelancers and expat advisers | none | Voluntary but recommended |
Professional indemnity vs professional liability vs business liability
These three English terms get used interchangeably online, but in Germany they mean different things. Professional indemnity covers pure financial loss only. Professional liability is the broad umbrella that adds bodily injury and property damage. Business liability covers third-party injury and property damage during your everyday operations. To work out which one you need, ask whether the loss involved money only or whether someone was hurt or something was damaged. A pure financial loss stands alone; a consequential financial loss flows from a physical event and belongs to the broader policies. If you need cover across all three, start with our professional liability insurance hub.
| Cover | German name | What it pays for |
|---|---|---|
| Professional indemnity | Vermögensschadenhaftpflicht | Pure financial loss from your advice or work, no injury or property damage |
| Professional liability | Berufshaftpflicht | The umbrella: financial loss plus bodily injury and property damage |
| Business liability | Betriebshaftpflicht | Third-party injury or property damage during your operations |
How much does professional indemnity insurance cost in Germany?
Premiums are profile-dependent, so there is no flat price. As a guide from German broker data (2026): advisory freelancers and small consultants typically start around €135 to €330 per year, while regulated professions carrying higher mandatory limits (lawyers and similar, with €250,000 to €1 million of cover) usually run around €555 to €1,099 per year. Simple freelance cover has been quoted from around €135 per year for basic profiles, with some entry-level tariffs reported below that.
Four things move your premium: profession and risk, your annual revenue, the cover sum (Deckungssumme) and the deductible (Selbstbehalt). The cover sum and the deductible are the two levers you control directly. Raising the deductible from €0 to around €1,000 trims the yearly cost; lifting the cover sum to meet a statutory minimum pushes it up. Since every quote depends on your exact profile, we price it for you rather than post one number. Tell us your profession, revenue and required limit, and you get a real figure in English.
Advisory freelancer / small consultant
~€135–330 / year
cover sum 100k–500k €
Regulated profession (lawyer, etc.)
~€555–1,099 / year
cover sum 250k–1m €, higher mandatory limit
Simple freelance cover (market low)
from ~€135 / year
entry-level profile; some tariffs reported below this threshold
Getting covered as an expat professional in Germany
Not sure you even legally need this? That is the most common question English-speaking professionals ask, and it is the right place to start. As an independent broker (Versicherungsmakler under §34d GewO), DigiCare represents you, not a single insurer, so we can tell you honestly whether cover is compulsory for your profession or simply sensible, then compare the German market on your behalf.
Servicing, questions and claims handling all run in English. DigiCare is an IHK-licensed §34d broker and our broker licence is publicly verifiable at vermittlerregister.info. A German-language version of this page is also available.
Tell us your profile in English
Your profession, annual revenue, and any statutory limit you must meet. We confirm whether the law requires cover for you.
We compare the market
As an independent Makler we shop multiple German insurers and explain the options in plain English, including cover sum and deductible trade-offs.
You decide
You receive the documents in English. Under §8 of the German Insurance Contract Act (VVG) you have a 14-day right of withdrawal, in text form and with no reason needed, so you can change your mind after signing.
Also available: German-language version
Chapter VI
Frequently asked questions
- Does professional indemnity insurance cover mistakes I made before the policy started?
- Often yes, through retroactive cover (Rückwärtsversicherung). Most German policies work on a claims-made basis, so they can include errors committed before the start date as long as you were unaware of any claim when you signed. Ask your broker to set the retroactive date back to when your practice began, otherwise an old mistake that surfaces later may fall outside the cover.
- Are legal defence costs included?
- Yes. Defending unjustified claims is a core part of the policy (passive legal protection). The insurer reviews whether the claim against you is justified, pays to defend you when it is not, and indemnifies the client when it is. That defence work applies to pure financial loss claims arising from your professional duties.
- What happens to my cover when I close my practice?
- You can add run-off cover (Nachhaftung). German professional indemnity claims can arrive years after the work was done, so when you retire or close the practice, run-off cover keeps you protected against claims for past work for an agreed period. This matters most for regulated professions such as lawyers and insurance intermediaries (§34d GewO).
- Can I cancel the policy after I buy it?
- Yes. Under §8 of the German Insurance Contract Act (VVG) you have a 14-day right of withdrawal, in text form and without giving any reason.
- Is this the same as private liability insurance?
- No. Private liability (Privathaftpflicht) covers everyday personal accidents. Professional indemnity covers pure financial loss to clients from your professional work, with cover sums from €250,000 up to €1,000,000 or more depending on your profession.
Get a no-obligation quote in English
DigiCare Insurance is an independent broker that arranges professional indemnity cover for expats and regulated professionals in Germany. English service from quote to claim. IHK-licensed (§34d GewO), with a 14-day right of withdrawal on every policy.