How to sort out insurance as a freelancer (in Germany)
By Carrie M. King →Not sure where to start when it comes to insurance? Here’s a quick guide to the less-complex-than-it-seems world of freelancer insurance in Germany.
Germany is a highly-insured country. When you live and work here, you need to be highly-insured too. Setting up insurance might initially feel daunting, but it’s a pretty straightforward process and once you’ve ticked it off your to-do list, you’ll have a lot of security.
Yes, Germany is cautious and paperwork-heavy, but the systems do work once you set the wheels in motion. In this article, we’ll give you a brief run-down of the main insurances you need to think about as a freelancer. Only health insurance is mandatory, but the rest are advisable. Bear in mind, too, that this is a non-exhaustive list, so depending on your field, there may be other insurances that you could consider signing up for.
Ready to dive into freelancer insurance? No? Let’s do it anyway.
Health insurance
Health insurance is first on our list because it’s mandatory. Every resident of Germany must have health insurance regardless of age, health status, country of origin, or work situation. And let’s not beat around the bush: health insurance in Germany is expensive.
As an employee, your employer calculates and pays half of your monthly contributions, but as a freelancer, you’ll need to sort that out yourself. How much you pay will depend on your income from the previous year or, if you’re just starting out, how much you estimate you’ll earn.
There are two main modes of health insurance in Germany: public (statutory) and private. Let’s take a look.
Statutory health insurance
Around 88% of Germans are insured through statutory or public health insurance which is managed by 110 different funds. These companies have slightly different insurance offerings, but each will cover all your major health needs like doctor visits, basic dental care, hospital stays, emergency care, medical treatments, mental healthcare, some prescriptions, and pregnancy. If you have particular needs, you may need to spend a little extra time researching which company would serve you best.
It’s usually better to choose a statutory health insurance provider as it’s very difficult to return to the public system once you’ve gone private. As of 2023, the public health insurance contribution rate is 14.6% of your gross salary. Freelancers and self-employed people will pay a monthly minimum of €160-190, which assumes a minimum income of €1038, but your actual contributions will likely be much higher.
Private health insurance
The remaining 10-12% of German residents are privately insured. Where public health insurance funds are obliged to accept anyone who lives in Germany, private insurance funds require a minimum annual income of €69,300 (as of 2024) and are likely to charge higher premiums based on age, risk level, and health status. They are also unlikely to cover pre-existing conditions. However, waiting times are usually shorter in the private system as there are simply fewer people competing for services.
Künstlersozialkasse
If you’re freelancing in a creative field, you may be eligible for membership of the Künstlersozialkasse or KSK. Freelancers don’t have employers to help cover some of their contributions and artists often receive lower or less regular income. The KSK was set up to provide for artists and help subsidise their insurance contributions.
So if you’re an artist or creative freelancer, it’s really worth applying to be a member of the KSK. The process can be long and tedious but once you’re accepted, your health insurance costs will lower dramatically and your pension and nursing care insurance will also be covered. You’ll pay your contributions through the KSK but remember, it is not a health insurance fund in itself. You need to have health insurance before you begin your KSK application.
Liability insurance
Though it’s completely voluntary, I’ve never met a German who doesn’t have liability insurance (Haftpflichtversicherung). This insurance covers you in the event that you accidentally injure another person or damage their property.
If, for example, you’re at a party and knock over the host’s sound system with exuberant dance moves, you are personally liable for the damages—as well as for killing the buzz. Liability insurance should cover damages of up to €5 million and, because around 83% of Germans opt for this kind of insurance, it’s typically not very expensive. As well as injury, damages, and financial losses, liability insurance should cover any damages to rented property or costs incurred from losing your keys.
Income protection insurance
Income protection insurance (Berufsunfähigkeitsversicherung) is an important one for freelancers to consider. This insurance protects you against loss of income in the event you find yourself unable to work due to illness.
When you’re a freelancer, you don’t have the support of an employer who might cover your salary if you’re off sick for an extended period. Freelancers simply don’t get paid if they can’t work. That’s why income protection insurance is so important for freelancers.
Contents/equipment insurance
As a freelancer, you have to buy your own equipment and if it’s lost, stolen, or damaged, you must replace it yourself. Contents insurance (Inhaltsversicherung) covers the equipment you need to run your business, whether that’s your laptop, camera, musical instruments, or any other number of tools you need for work. Protecting yourself against unforeseen costs like this could be the difference between simply replacing your equipment and having to shut down your business.
Other insurances
If you can think of it, there's insurance for it. I’m not going to list all the possible insurances you could shore yourself up with, but it’s important to think about the realities of your day-to-day work life and to insure yourself adequately according to your individual needs. You may also need:
- Travel insurance
- Life insurance
- Legal insurance
- Home/premises insurance
- Car insurance
Aside from health insurance, none of it is mandatory, but planning for unforeseen eventualities will make your life easier in the long run.
What else do freelancers need to know? Read our guide to the 10 key challenges freelancers face and how to solve them.
Insurance may not be the most thrilling topic, but providing for your safety and that of other people is a smart, considerate thing to do. Spend a little time looking into the different providers and choose options that make sense for you. It’ll give you peace of mind and you may thank yourself later.
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