Mandatory insurances for shop owners (business liability insurance and contents insurance)

1. Betriebshaftpflichtversicherung (business liability insurance)

What is it?
Business liability insurance covers damage you cause to customers or third parties in the course of your business – including bodily injury, property damage, or financial loss.
Your employees are usually covered as well.

Examples of what it may cover:

• A customer slips on a wet floor in your shop and gets injured.

• A product you sold causes damage or injury to the user.

• An employee causes damage at the customer’s premises during delivery or installation.

Is it mandatory?
Legally not compulsory, but in practice almost essential. Many contracts, cooperations or municipalities will not work with you unless you can prove you have liability insurance.
It is considered the most important insurance for any shop owner.

Typical cost range:
Usually around €150–400 per year, depending on:

• type and size of your business

• risk profile and turnover

• number of employees

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2. Inhaltsversicherung (contents insurance for your shop)

What is it?
Contents insurance covers everything inside your business premises, such as:

• stock and goods

• equipment, machines, cash registers

• furniture and fixtures

Depending on the policy, it covers risks such as:

• 🔥 Fire

• 💧 Water damage (e.g. burst pipes)

• ❄️ Snow and weight of snow

• 🏴‍☠️ Burglary and theft, vandalism

• 🌪️ Storm and hail

Examples:

• Your stockroom burns down.

• Your POS systems or computers are stolen.

• Your stock is destroyed by flooding or heavy water damage.

Is it mandatory?
No, it is voluntary, but strongly recommended if:

• you keep valuable stock on site

• you use expensive equipment or technology

Typical cost range:
Depending on location, security level and total value of contents, usually €200–800 per year.

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3. Berufsunfähigkeitsversicherung (occupational disability insurance)

What is it?
This insurance provides you with a monthly income if you become unable to work in your profession due to illness or accident.

Is it mandatory?
No, but very important for self-employed people and entrepreneurs whose income depends mainly on their own labour and health, and who may not be sufficiently covered by the state pension or other systems.

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4. Unfallversicherung (accident insurance)

• If you have employees → you must register with the relevant Berufsgenossenschaft (statutory accident insurance).
  This covers workplace accidents and commuting accidents for your employees.

• If you do not have employees:
  You can take out voluntary accident insurance for yourself to cover accidents at work and in your private life.

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5. Rechtsschutzversicherung (legal protection insurance)

What is it?
Legal protection insurance covers – depending on the tariff – lawyer and court costs arising from legal disputes, e.g. with:

• customers (complaints, damage claims)

• suppliers and service providers

• landlords

• authorities or the local municipality

Is it mandatory?
No, but it can be very helpful to avoid high legal costs, especially for small businesses with limited reserves.

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Summary of insurances by importance

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Additional notes

• Many insurers offer combined packages for retailers and small businesses that bundle several types of insurance (e.g. business liability + contents).

• Always pay attention to:

  • Policy conditions and exclusions

  • the excess (Selbstbeteiligung) you have to pay yourself in a claim.

• Business insurance premiums count as business expenses (Betriebsausgaben) and are usually tax-deductible.

The authors and editorial team of the website aim to provide accurate information based on thorough research and multiple sources. However, errors may occur or details may be incomplete or subject to change. Please treat this article as an initial guide only and always consult insurance professionals, tax advisors or the competent authorities for binding and up-to-date advice.