Compulsory insurance in agriculture: Your guide to mandatory cover
02.04.25
11
Minutes
Katrin Straub
Managing Director at nextsure
Insurance requirements in agriculture are complex. Many farmers ask themselves: which policies are essential? This article explains the most important compulsory insurance policies and highlights potential areas for optimisation.
The topic in brief and concise terms
Agricultural social insurance (SVLFG), with accident, health and old-age insurance funds, is the core of compulsory agricultural insurance.
Business liability insurance is essential for every agricultural business, even if it is not always legally required.
Minimum business sizes and the type of activity determine the scope of compulsory insurance for farmers and family members working in the business.
Quick overview: key points of compulsory insurance
Agricultural compulsory insurance covers several areas. Central to this is the Social Insurance for Agriculture, Forestry and Horticulture (SVLFG). It comprises three main branches for business owners and family members.
Agricultural accident insurance is mandatory for all business owners by law. Membership in the health insurance fund (LKK) and pension fund (LAK) is compulsory.
This obligation applies from a certain minimum farm size. Since 1 January 2014, this minimum size has been regulated uniformly across Germany.
The Agricultural Social Insurance (SVLFG) in Detail
Essential: Agricultural Accident Insurance (LUV)
Every agricultural business owner is subject to statutory accident insurance. This covers workplace accidents and occupational diseases.
It protects the business owner themselves, as well as family members working in the business and employees. The SVLFG assumes the employer's liability.
One example of this protection: a farmer seriously injures themselves while carrying out repair work on the tractor.
Health protection: Agricultural Health Insurance Fund (LKK)
Membership of the LKK is mandatory for farmers above a certain farm size. Around 504,000 people were insured here at the beginning of 2024.
Contributions are based on the value of the land area. There are 20 contribution classes. The lowest contribution in 2017 was around 90 euros.
Family members working in the business are often compulsorily insured, for example when they work more than 20 hours a week. A health insurance scheme for the self-employed is included.
Provision for old age: Agricultural Pension Fund (LAK)
Like the LKK, compulsory membership of the LAK is linked to a minimum farm size. Farmers, spouses and family members working in the business as their main occupation are insured.
From 2025, the monthly contribution for farmers and spouses will be 312 euros. Family members working in the business pay 156 euros.
Other important insurance policies for agricultural businesses
Essential: Business liability insurance
A business liability insurance policy is essential for every farmer. It is not always legally required. It covers personal injury, property damage and financial loss.
Farmers are liable with all their assets for damage caused by negligence. Example: escaped animals cause a traffic accident resulting in damage of more than €50,000.
Essential for the vehicle fleet: motor vehicle liability insurance
All vehicles with a top speed of more than six kilometres per hour require motor third-party liability insurance. This also applies to tractors and self-propelled machinery.
Without this insurance, there is no cover in the event of an accident under farm liability insurance.
Protection for the farm and the environment
Property insurance protects stables and farm buildings against fire, storm or hail. Environmental liability and environmental damage insurance is becoming increasingly important.
R+V offers a nature conservation policy for damage to protected animals or bodies of water. Many businesses underestimate environmental damage; it can quickly run into six-figure sums.
Understanding legal foundations and current aspects
Agricultural compulsory insurance is based on the Social Codes (SGB) and specific legislation. These include ALG and KVLG.
SVLFG implements these requirements. The representatives' assembly of SVLFG decides the minimum thresholds for LAK and LKK.
Current information is available directly from SVLFG. The German Social Accident Insurance Regulation 1 provides prevention guidelines.
Our expert tip: Check regularly whether your business exceeds or falls below the current minimum thresholds. Changes can affect your compulsory insurance status.
An exemption is only possible in narrowly defined exceptional cases. This applies, for example, to income above a certain threshold.
Risk management and premium optimisation in agriculture
A careful risk analysis optimises insurance cover. Not every voluntary insurance policy is worthwhile. Analyse your specific risks.
Livestock farming, direct marketing or biogas plants require different types of cover. LKK contributions are divided into twenty classes.
At the LAK, an application can be made for a contribution subsidy, especially for young entrepreneurs. The SVLFG advises on contribution issues and subsidy options.
Regular review of existing contracts (at least every three years).
Bundling insurance with one provider can enable discounts (e.g. AgrarPolice).
Checking deductibles to reduce premiums.
Clarification of whether accident insurance is compulsory for all persons working in the business.
Obtaining at least three comparison quotes for voluntary insurance policies.
Take advantage of advisory services from the SVLFG and specialised insurance brokers. Professional advice can often save several hundred euros per year.
Special case: Employed family members (MiFa)
Working family members (MiFa) are important pillars in agriculture. Their social security cover follows separate rules.
As a general rule, MiFa are often subject to LKK insurance, regardless of the employment relationship. The agricultural entrepreneur pays the contributions for this.
MiFa are insured with the pension fund if they work mainly in the business. In 2025, the LAK contribution for MiFa is €156 per month.
The distinction between helping out and an employment relationship can be complex. New criteria for distinguishing between the two have been in place since 2015.
Appropriate remuneration is an indicator of an employment relationship. A clear contractual arrangement with MiFa creates legal certainty for both sides.
The compulsory insurance requirements for agriculture are complex and detailed. Incorrect or incomplete cover can pose an existential threat in the event of a claim.
An individual analysis of your situation is therefore essential. Professional advice can often save several hundred euros a year.
At nextsure, we help you keep track of things and tailor your cover to your needs. Focus on your valuable work.
The company pension scheme for business owners offers further options.
Request your individual risk analysis now: Have your insurance situation checked free of charge. You will then receive specific suggestions for improvement in up to three areas.
More useful links
SVLFG provides comprehensive information on the agricultural employers' liability insurance association, insurance and contributions.
SVLFG provides important information for employees regarding the Agricultural Health Insurance Fund (LKK) and the Agricultural Pension Fund (LAK).
The Federal Administration Portal contains an entry on the service directory of agricultural accident insurance.
The Bavarian State Institute for Forests and Forestry (LWF) provides information on forest management and related topics.
SVLFG provides detailed information on the benefits of agricultural accident insurance.
The German Social Accident Insurance (DGUV) provides address information for SVLFG.
The Federal Ministry of Justice provides the statutory text on farmers' old-age provision (ALG) via its "Gesetze im Internet" platform.
The Federal Statistical Office (Destatis) provides data and information on agricultural holdings.
FAQ
What does agricultural accident insurance cover?
It covers occupational accidents, commuting accidents (between home and workplace) and occupational diseases of agricultural entrepreneurs, their assisting family members and employees.
Can I be exempted from compulsory insurance in the LAK?
An exemption is only possible in very limited exceptional cases. This applies, for example, when certain income thresholds outside agriculture are exceeded. SVLFG assesses this on a case-by-case basis.
Is private liability insurance included in farmers’ business liability insurance?
Many public liability insurance policies for farmers, such as those from R+V, also include personal liability cover for the farmer and their family. The exact scope is set out in the policy terms and conditions.
How is the minimum size for compulsory insurance in agriculture determined?
The minimum size is determined based on criteria such as the number of hectares or the number of animals. SVLFG provides detailed information and calculators.
What happens if I do not fulfil my agricultural insurance obligation?
Failure to comply with the insurance obligation can lead to back payments and late payment surcharges. In the event of a claim, problems may arise. Early registration with the SVLFG is important.
Does the business liability insurance also cover environmental damage?
Basic environmental liability cover is often part of general liability insurance. For more comprehensive protection, there are specialist environmental damage insurance policies.
