If you are thinking about setting up a company in Germany or looking at insurance policies for an existing company, then there are a number of key points to consider as part of good risk management. In certain situations, Company Owners, Managers and Boards can find that their own income and personal assets are put at risk if they are named in claims against the company or themselves individually in a professional capacity.
For this reason, any business needs to have a good awareness of the specific issues for risk management and the laws that relate to them in Germany. Are you a businessperson in Germany? If YES then here are some of the insurance policies that you can take to cover your business against potential risks;
- Asset protection insurance
Most Owners and Managers of a company know that asset protection insurance policy will typically cover any losses relating to the destruction of office equipment or factory equipment, machinery, stock, raw materials, and finished goods in any instances of theft, water damage, storms, and even fire. About 78% of firms in Germany have an asset protection insurance cover; truly, it is better to be safe than sorry, don’t you think?
- Liability Insurance
Well, a liability insurance cover is really crucial for any business in Germany, and this is evident as about 95% of German companies do have sufficient liability insurance in place designed to protect the company against any 3rd party injury claims and property damage claims also protecting against any resulting financial losses that may occur following such claims. The liability insurance coverage can be broken down into two main sections of risk coverage for businesses, and they are as follows;
- Public liability insurance-this insurance policy covers claims made by members of the public or external stakeholders in the event of an incident that causes injury or harm to the public by the public or damage to their property. It’s designed to protect the business from losses that may stem from these claims by the public.
- Product liability insurance-this insurance cover protects businesses from legal costs associated with a personal injury or damage claim caused by a product your business has manufactured or distributed.
- Health and safety insurance
As a potential or existing business owner in Germany, you need to be up to speed with every regulation involved with German health and safety laws and the European Union regulations regarding this. Managers and Owners are held directly responsible for workplace safety in Germany, and suspected negligence will also in legal action against the business. Hence a safety and health insurance covers for business in Germany is really essential.
- Legal expenses insurance
Legal expenses insurance covers the cost of pursuing or defending against certain legal actions against your business. The chances of a dispute with another party such as a client, a supplier, or an employee are unavoidable, and therefore having protection through a legal expenses insurance policy will really come in handy for the business. Legal expenses insurance covers legal costs and expenses in respect of; contract disputes, a tax investigation, jury service attendance, criminal defense, health, and safety investigations, and employment disputes.
These are just some of the insurance policies that business in Germany can take to ensure that it is protected from potential risks and that it maintains proper risk management and coverage for the business.
