Going self-employed: the insurance you should know about

When you start a business, you have a lot on your mind. Some insurance is compulsory; other cover protects you against risks that could cost you your livelihood. Here you can read what really matters and which deadlines you should know.

Uygar Vural, SIGNAL IDUNA insurance in Cologne · Updated: 14 October 2026

Compulsory: health and long-term care insurance

Even when self-employed, you must have health and long-term care insurance, either statutory or private. As a rule, you pay the premium on your own. Exception: artists, writers and journalists are often insured through the Künstlersozialkasse (artists’ social insurance fund) and pay only about half.

Important: for the self-employed, sickness benefit (Krankengeld) is not automatically included in statutory health insurance. You have to choose it explicitly. It is then only paid from the 43rd day of illness, and you are bound by this choice for three years. For the period before that, you can protect yourself with an optional tariff (Wahltarif) from your health fund or a private daily sickness allowance (Krankentagegeld).

Statutory accident insurance institution (Berufsgenossenschaft)

Register your business with the responsible Berufsgenossenschaft within one week. In most cases this is already done when you register your trade (Gewerbeanmeldung). You can often insure yourself there voluntarily against accidents at work.

Business liability insurance

If you or your employees make a mistake, you can be liable for the damage, often without limit and with your private assets. Business liability insurance (Betriebshaftpflicht) pays justified claims and fends off unjustified ones. Advisory professions may also need financial loss liability insurance (Vermögensschadenhaftpflicht). It pays if clients lose money because of a mistake in your advice. For some professions it is even mandatory.

Protecting your ability to work

You only receive the statutory reduced earning capacity pension (Erwerbsminderungsrente) if you have paid compulsory contributions for at least three of the last five years. If you no longer pay in as a self-employed person, you therefore usually lose this protection after about two years. If you then fall ill and can no longer work, your income stops. Occupational disability insurance (Berufsunfähigkeitsversicherung) can close this gap. The younger and healthier you are when you take it out, the easier acceptance usually is and the lower the premium.

Retirement provision and unemployment

• Pension: many self-employed people are no longer in the statutory pension insurance. For some, however, the obligation continues, for example for certain craftspeople, teachers, midwives and self-employed people with only one client. They must register with the pension insurance (Rentenversicherung) themselves within three months of starting. Everyone else can apply for compulsory insurance within five years.
• Unemployment insurance: if you were employed for at least 12 of the last 30 months and work at least 15 hours a week as a self-employed person, you can continue your insurance voluntarily. You must apply to the Federal Employment Agency (Agentur für Arbeit) no later than three months after starting your self-employment. This deadline is easy to miss.

Useful depending on your business

• contents insurance for furnishings, goods and equipment,
• electronics insurance for laptops, tills and devices,
• business interruption insurance if you lose turnover after damage,
• legal expenses insurance, for example for disputes with employees or the landlord of your business premises; disputes with customers and suppliers are usually only covered with a separate add-on module,
• cyber insurance if you work with customer data.

How I can help

Together we will look at what your business really needs, and I will show you suitable solutions from SIGNAL IDUNA. I would rather start with what matters than with too many policies. Later, we will adjust your cover as your business grows. Please also clarify questions about compulsory pension insurance and unemployment insurance with the Deutsche Rentenversicherung (German statutory pension insurance), the Federal Employment Agency or your tax adviser.

This article gives a general overview. Exactly what is covered is set out in the terms and conditions of the plan. I am a tied insurance agent (gebundener Versicherungsvertreter) and exclusively arrange products of the SIGNAL IDUNA Group.