Liability insurance

Liability insurance protects you against damage claims from other people. For example if you ride your bicycle and injure someone else or scratch a car, your liability insurance covers for it.

Liability insurance is considered the second most important type of insurance, after health insurance. Unlike health insurance, it’s not required, but most people still recommend it.

What does it cover

Basically, all damage to other people, property and assets. In Germany, there is no limit to how much reparations you can seek, so a simple mistake could bankrupt you.

Typical examples include:

However, it does not cover damage to your own things, and things that are covered by other types of insurance (car insurance, dog liability insurance, etc).

Types of liability insurance

  • Private liability insurance - This is the one that everyone has. It covers you personally.
  • Professional liability insurance - It cover your business activities when you are self-employed.
  • Dog liability insurance - It covers the damage and injuries caused by your dog. It’s mandatory in some German states.
  • Drone liability insurance - It’s usually a separate insurance. It covers drone owners.

How to choose

You can use comparators like Verivox, Check24 and Tarifcheck. Those will show you different prices. However price isn’t the only thing you should look at. The coverage can vary a lot, and some companies pay more easily than others. Check the insurance companies on Trustpilot, and read what other people say about them.

A lot of the recommendations online are not genuine. Many websites recommend whatever pays them a commission, so there is a lot of bad advice if you search for “best liability insurance”.

Check the insurance’s IPID sheet. It’s a single page that explains what’s covered in simple terms. It can help you choose a good policy. You can also use Stiftung Warentest’s policy checker.