Professional liability insurance for regulated professions: a licensing requirement

Anyone who wants to work as a lawyer, tax adviser, auditor, notary, contracted doctor or insurance intermediary needs more than a professional licence: without professional liability insurance with the prescribed minimum cover, these regulated professions offer no access to practice. The insurance is a legal condition, not an optional business extra.

In brief: for regulated professions, the BRAO (German Federal Lawyers' Act), the StBerG (German Tax Advisers Act), the WPO (German Auditors' Act), the BNotO (German Federal Notaries' Act), the VersVermV (German Insurance Mediation Ordinance) and § 95e SGB V (German Social Code, Book V, statutory health insurance) prescribe professional liability insurance with fixed minimum cover amounts. Affected are chamber-registered and licensed professions such as lawyers, tax advisers, auditors, notaries, contracted doctors and insurance intermediaries. The insurance is a condition of licensing: without continuous proof, the licence can be suspended or withdrawn.

Who is affected by the mandatory professional liability insurance?

Only regulated professions are affected, meaning those whose practice is tied to a licence granted by a chamber or supervisory authority. Under the relevant professional laws, these include lawyers (BRAO), tax advisers (StBerG), auditors (WPO), notaries (BNotO), contracted doctors (§ 95e SGB V) and insurance intermediaries (VersVermV). Anyone who wants to work, or already works, in one of these professions must first check whether their own activity falls under the relevant professional law and therefore triggers statutory professional liability insurance. Freelancers and companies outside these chamber-registered and licensed professions are not covered by this specific obligation, even though voluntary cover is often just as sensible there. It is also important to note that the obligation applies not only to individuals but in many cases also to law firms, practices and companies in which the regulated activity is carried out.

Why does the legislator require compulsory insurance here in particular?

Regulated professions are characterised by the fact that mistakes in practice, such as incorrect legal advice, an error in a balance sheet, a failed notarial contract or wrong advice on insurance, can cause clients, patients or customers considerable financial loss. The legislator therefore ties the licence to proof of professional liability insurance with a fixed minimum cover. This ensures that injured parties do not go empty-handed when a loss occurs, even if the individual professional could not compensate for the damage from their own funds.

What minimum cover amounts does the legislator prescribe?

The amount of the prescribed minimum cover differs by profession and is set in the respective professional laws. The following overview shows the statutory minimum amounts:

These amounts are statutory minimums, not upper limits. Anyone who bears a higher liability risk or works in larger partnerships, law firms or practices can and should agree on higher cover than the law requires as a minimum.

What do you need to do in practice?

The route to the prescribed professional liability insurance can be summarised in five steps:

1. Check whether your profession requires statutory professional liability insurance.
2. Determine the minimum cover amount prescribed for your profession.
3. Take out suitable professional liability insurance (where applicable via the group contract of the chamber or association).
4. Submit proof of insurance to the chamber or supervisory authority.
5. Maintain cover without gaps and prove renewals on time.

Many chambers and associations offer group contracts through which the prescribed minimum cover can be arranged easily and often more cheaply than with an individual policy, a good first port of call before taking out an individual policy. A tool such as Company Audit shows which of these obligations apply to your company in particular.

How often does the cover have to be proven?

Proof of professional liability insurance is not a one-off formality but a continuing obligation: the cover must exist without interruption for the entire duration of the licence. Renewals of the policy must be proven to the competent chamber or supervisory authority on time, so that no gap in cover arises. Anyone who changes insurer or cancels the policy should therefore arrange a seamless transition to the new cover early.

What happens if there is a gap in cover or proof is missing?

Without continuous proof of the prescribed professional liability insurance, the licence can be withdrawn or suspended. A gap in cover can therefore directly endanger the ability to practise, which is why premium payments should never fall into arrears. This compulsory insurance must also be distinguished from voluntary business liability insurance: the two cover different risks, so for many regulated professions both policies make sense. Anyone unsure which policy covers which risk should clarify this specifically with the insurer or the competent chamber before a gap arises.

Frequently asked questions

Is professional liability insurance really mandatory for regulated professions?

Yes. The BRAO, StBerG, WPO, BNotO, VersVermV and § 95e SGB V prescribe professional liability insurance with a fixed minimum cover amount as a licensing condition for the respective professions. Without this proof, the licence is not granted in the first place or is withdrawn later.

Which professions count as regulated professions for the purposes of this obligation?

These include lawyers, tax advisers, auditors, notaries, contracted doctors and insurance intermediaries, each governed by the relevant professional law and with its own statutory minimum cover amount.

Is voluntary business liability insurance enough instead of professional liability insurance?

No. The prescribed professional liability insurance must be distinguished from voluntary business liability insurance and does not replace it; often both policies make sense because they cover different risks.

What happens if the minimum cover is not met?

A gap in cover can trigger the suspension of the licence immediately. Those affected should therefore never let premium payments fall into arrears and should keep a close eye on contract renewals.

To whom must proof of insurance be submitted?

Proof of professional liability insurance must be submitted to the competent chamber or supervisory authority that granted the licence, often already as a condition of the initial licence.

Source: BRAO · StBerG · WPO · BNotO · VersVermV · § 95e SGB V. This article is general information and does not replace legal advice in an individual case. As of: July 2026.