Insurances for companies in Germany

Companies need an entirely different insurance concept than private customers. On the one hand, for the very specific risks of entrepreneurial activity. On the other hand, for its owners and employees.

Which insurances are important for companies in Germany?

Being an entrepreneur always means taking risks. This includes, for example, investing in a new building or a machine. Or taking on a large customer order, developing an IT project or working as a service provider.

You cannot insure yourself against every entrepreneurial risk, but there is protection against financial consequences for many situations. Classic damages that are covered by insurance are:

• A server breaks down and you suffer downtime as a result.
• There is a fire in the factory and the building and machines are damaged.
• You cause damage to a customer.
• A hacker gains access to your system and demands a ransom.

Liability insurance for businesses

Liability insurance protects you against claims for damages from customers. It is the most important insurance for companies, no matter in which industry you are active and whether you offer services or are at home in the manufacturing industry.

The scope of benefits of a liability insurance is:

• Examination of the liability issue
• Defense against unjustified liability claims
• Payment of damages up to the agreed sum insured.

Depending on the industry or occupational group, there are different types of liability insurance. Our experts will help you find the right cover and advise you on the advantages and disadvantages of the individual components.

Buildings, machinery and more

Property insurance is comparable to private household insurance. The protection covers the inventory against damage caused by fire, tap water or burglary. In addition, natural hazard damage should be covered, i.e. flood or storm damage.

The same applies to buildings insurance. It is the counterpart to residential building insurance. Here, too, natural hazards must be covered by a separate module.

Insurance for managing directors and employees

In addition to insurance for the company's assets or for protection against liability claims by third parties, there is also the possibility of insuring employees and managers. Here, company health insurance and company pension schemes are particularly relevant in Germany.

Company pension scheme

The occupational pension scheme is set up by the employer and belongs to the second layer of old-age provision in Germany.

As an employer, you are obliged to offer the employee the possibility of a company pension. However, you are not obliged to pay the employee a company pension. You only have to pay at least 15 per cent of the insurance premium if the employee wants a company pension.

There are the following options for occupational pensions:

1. Purely employer-financed company pension.

2. Mixed-financed occupational pension.

3. Employee-financed occupational pension (with 15% compulsory employer contribution).

The occupational pension scheme is attractive for the employee from a tax point of view. It is deducted directly from his gross salary and no income tax is due on it.

Thus, the gross amount is saved for the pension. In addition, the employee receives at least the 15 per cent subsidy from the employer. At retirement age, when the occupational pension is paid out, lower taxes are due and the employee benefits from the interest and tax effect.

Setting up an occupational pension is quite complex and requires a lot of advice. We are happy to help you with this. Whether you are an employer or an employee.

Company health insurance

In addition to occupational pension schemes, occupational health insurance is becoming increasingly popular. Statutory health insurance is standard in Germany and the only choice for many employees.

However, the benefits are constantly being reduced. Not everyone has the option of taking out private health insurance. That is why company health insurance is a good supplement to insurance cover.

As an employer, you can choose from a variety of options for company health insurance:

• Dental insurance
• Hospital insurance
• Spectacles insurance
• Health insurance for abroad
• and more

The supplementary insurance is financed by the employer. Up to 40 euros per month are tax-free for the employee. For the employer, the bKV increases the attractiveness of the company and, in addition, the bKV reduces the average number of sick days in the workforce.

Patients with supplementary insurance receive appointments with doctors more quickly and have correspondingly shorter periods of absence.

Independent advice from CR&Cie

Chambervelt, Rooselain & Cie is an independent insurance broker and has specialized in advising expats for years. We are not beholden to any company, but act in the best interests of our clients. As brokers, we have access to a wide range of insurance products and can find the best deal for you and your company.

Simply book a no-obligation initial consultation with us and tell us about your situation. We look forward to hearing from you. You can book an appointment via this link: CR&Cie appointment