Compulsory Insurance in Agriculture: Your Guide through Mandatory Coverage
2 Apr 2025
5
Minutes
Katrin Straub
CEO at nextsure
Insurance obligations in agriculture are complex. Many farmers wonder: Which policies are a must? This article explains the most important mandatory insurances and highlights areas for optimisation.
The topic in brief and concise terms
The agricultural social insurance (SVLFG), including accident, health, and pension insurance, is the core of mandatory insurance for agriculture.
A public liability insurance is existentially important for every agricultural business, even if it is not always legally required.
Minimum operating sizes and the type of activity determine the scope of compulsory insurance for farmers and helping family members.
Quick Overview: Key Points of the Insurance Obligation
The mandatory insurance for agriculture covers several areas. Central to this is the Social Insurance for Agriculture, Forestry and Horticulture (SVLFG). It includes three main branches for entrepreneurs and family members.
Agricultural accident insurance is mandatory for all entrepreneurs by law. There is an obligation for the health insurance (LKK) and pension fund (LAK).
This obligation applies from a certain minimum farm size. This minimum size has been uniformly regulated nationwide since the first of January, 2014.
The Agricultural Social Security (SVLFG) in Detail
Indispensable: Agricultural Accident Insurance (LUV)
Every agricultural entrepreneur is subject to statutory accident insurance. This covers occupational accidents and also occupational diseases.
It protects the entrepreneur himself, as well as working family members and employees. The SVLFG assumes the employer's liability.
An example of this protection: A farmer gets seriously injured during tractor repairs.
Health Protection: Agricultural Health Insurance Fund (LKK)
LKK membership is compulsory for farmers above a certain farm size. Around 504,000 people were insured here at the beginning of 2024.
Contributions are based on land value. There are twenty contribution classes. The lowest contribution in 2017 was about ninety euros.
Working family members are often compulsorily insured, for example, if working over twenty hours a week. A health insurance for the self-employed is integrated.
Old-age Provision: Agricultural Pension Fund (LAK)
Similar to the LKK, LAK obligation is tied to a minimum business size. Farmers, spouses, and predominantly working family members are insured.
From 2025, the monthly contribution for farmers and spouses is three hundred twelve euros. Working family members pay one hundred fifty-six euros.
Additional important insurance for agricultural businesses
Essential: The Business Liability Insurance
A business liability insurance is essential for every farmer. Although not always legally required, it covers personal injury, property damage, and financial losses.
Farmers are liable with their entire assets for damages caused by their negligence. For example, escaped animals may cause a traffic accident resulting in damages exceeding 50,000 euros.
Indispensable for the Fleet: Motor Vehicle Liability Insurance
All vehicles exceeding six kilometres per hour require motor vehicle liability insurance. This also applies to tractors or self-propelled work machinery.
Without this insurance, there is no coverage in the event of an accident beyond the agricultural liability insurance.
Protection for Farm and Environment
A building insurance protects barns and agricultural buildings against fire, storm, or hail. Environmental liability and environmental damage insurance are gaining importance.
R+V offers a Conservation Policy for damages to protected animals or bodies of water. Many businesses underestimate environmental damages; these can quickly reach six-figure sums.
Understanding legal foundations and current aspects
The compulsory agricultural insurance is based on German Social Code (SGB) and special laws, including ALG and KVLG.
The SVLFG implements these regulations. Minimum sizes for LAK and LKK are decided by the SVLFG representative assembly.
Current information on this can be obtained directly from the SVLFG. The German Statutory Accident Insurance Regulation 1 provides prevention guidelines.
Our expert tip: Regularly check whether your business exceeds or falls below the current minimum sizes. Changes can affect your insurance obligations.
An exemption is only possible in narrowly defined exceptional cases. This applies, for example, when income exceeds a certain threshold.
Risk management and contribution optimisation in agriculture
A careful risk analysis optimises insurance coverage. Not every voluntary insurance is useful. Analyse your specific risks.
Animal husbandry, direct marketing, or biogas plants require different coverage. The LKK contributions are divided into twenty classes.
At the LAK, a contribution subsidy can be applied for, especially for young entrepreneurs. The SVLFG provides advice on contribution issues and subsidy opportunities.
Regular review of existing contracts (at least every three years).
Bundling of insurances with one provider can allow discounts (e.g. AgrarPolice).
Examination of deductibles to reduce premiums.
Clarification of whether accident insurance is mandatory for all persons employed in the company.
Obtaining at least three comparative offers for voluntary insurance.
Take advantage of the advisory services offered by 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 vital supports in agriculture. Their social security coverage follows its own rules.
Generally, MiFa often have to be insured with the LKK, regardless of the employment relationship. The agricultural entrepreneur pays the contributions for this.
In the pension fund, MiFa are insured if they work full-time. The LAK contribution for MiFa is two thousand one hundred and fifty-six euros per month.
The distinction between assisting and an employment relationship can be complex. Since 2015, there have been new criteria for differentiation.
An appropriate salary is an indicator of an employment relationship. A clear contractual arrangement with MiFa provides legal certainty for both parties.
Your next step towards optimal protection
Insurance duty in agriculture is complex and detailed. Incorrect or incomplete coverage can be existentially threatening in case of damage.
An individual analysis of your situation is therefore essential. Professional advice can often save several hundred euros annually.
At nextsure, we help you keep track and tailor your protection. Focus on your valuable work.
The occupational pension scheme for entrepreneurs offers further options.
Request an individual risk analysis now: Have your insurance situation reviewed at no cost. Then receive concrete optimization suggestions for up to three areas.
More useful links
SVLFG offers comprehensive information regarding the agricultural trade association, insurance policies, and contributions.
SVLFG provides essential information for employees concerning the Agricultural Health Insurance (LKK) and the Agricultural Pension Fund (LAK).
The Federal Administration Portal contains an entry about the service directory of agricultural accident insurance.
The Bavarian State Institute for Forestry and Forestry (LWF) offers information on forest management and related topics.
SVLFG provides detailed information about the services of agricultural accident insurance.
The German Social Accident Insurance (DGUV) provides address information for the SVLFG.
The Federal Ministry of Justice provides the legal text on farmer's old-age insurance (ALG) through its platform "Laws in the Internet".
The Federal Statistical Office (Destatis) delivers data and information on agricultural enterprises.
FAQ
What does agricultural accident insurance cover?
It covers occupational accidents, commuting accidents (between home and workplace), and occupational diseases of agricultural entrepreneurs, their family members who work with them, and employees.
Can I be exempt from compulsory insurance in the LAK?
An exemption is only possible in very limited exceptional cases. This applies, for example, if certain income thresholds outside of agriculture are exceeded. The SVLFG assesses this on a case-by-case basis.
Is personal liability insurance included in the business liability insurance for farmers?
Many farm liability insurances for farmers, such as those from R+V, also include personal liability insurance for the farmer and their family. The exact scope can be found in the contract terms.
How is the minimum size for mandatory agricultural insurance determined?
The minimum size is determined based on criteria such as the number of hectares or the number of animals. The SVLFG provides detailed information and calculators.
What happens if I fail to comply with my agricultural insurance obligations?
Failure to comply with the insurance obligation can lead to back payments and late fees. Problems arise in the event of a claim. Early registration with the SVLFG is important.
Does the business liability insurance also cover environmental damages?
Basic environmental liability insurance is often part of business liability insurance. For more comprehensive protection, there are specialized environmental damage insurance policies.
