Liability Insurance

What is Liability Insurance?

The insurance that covers the cost that occurs during an accident is liability insurance. It would cover situations like Personenschäden (person damage), Sachschäden (object damage) or Vermögensschäden (wealth damage). Though it is optional, it is one of the most crucial insurance in Germany alongside health insurance. 85% of the people in Germany opt to have this insurance as those accidents can otherwise cost you thousands of Euros or even more.

Table of Contents

According to §BGB 823, you are liable if you damage someone else property

Situations Covered by Liability Insurance​

While taking insurance, it is necessary to understand what is covered. Listed here are the important aspects of liability insurances.

  • Damages to borrowed, rented and hired property
  • Protection of things against uninsured third parties (Forderungsausfalldeckung)- If another party causes damage to you, they do not own insurance and can’t pay for you, then your liability insurance pays for you.
  • Loss of work or private keys (Schlüsselverlust) *You should check with your insurance provider if this is available as an add-on or is inclusive in the insurance.
  • Personal and property damage
  • Damages through internet use
  • Football, cycling, skiing and more sports.

In addition to the above, you can sign up for these additional coverage packages depending on your requirements(Zusatzpakete):

  • Tierhalter-Haftpflichtversicherung (pet liability insurance)- This can be a requirement by your dog training schools or landlords to cover any damages.
  • Haus- und Grundbesitzerhaftpflichtversicherung (house and property owner liability insurance) – This is only for those who own an apartment.
  • Auslandsaufenthalt (coverage abroad) – Insures you when you travel outside Germany. Coverage may vary in the EU region and outside the EU region.
  • Passiver Rechtsschutzversicherung (passive legal insurance)– This covers the legal cost for your defence if someone tries to claim any damages not caused by you.
  • Bauherrenhaftpflicht und Bauleistungsversicherung (house construction)– If you are getting your house constructed, this insurance will cover damages on and to your construction site.

Situations NOT Covered by Liability Insurance

Listed here are the aspects which are not covered in Private Liability Insurance.

  • Damages own object: For Eg: you break your own phone, you need a Electronic Insurance for this
  • Damages in Work: you need Professional Liability Insurance.
  • Damages to the Car: You need an individual Car Liability Insurance.
  • Damages due to Dog: you need a Dog Liability Insurance

EXAMPLE Scenarios

Scenario 1: While practising for a football/cricket match or any other sport, if you by mistake hurt your team-mate, liability insurance will cover all the medical cost on your behalf.

Scenario 2: With a single main entrance to an apartment or a facility, you get the keys to access the main door. If you accidentally drop keys somewhere and lose them, the lock will have to be changed, and you will have to pay for the new one. It can be heavy on your pocket, but liability insurance takes care of it.

Scenario 3If you use bicycles or electric bicycles and you accidentally hit a person or cause any damage to a property owned by someone else, then liability insurance will help you.

Points to consider while taking the Liability Insurance Online

 If you choose to move with a German provider, make sure you know these terminologies before signing any contract:

  • Echter or Unechter Vermögensschaden: Damage to wealth hapapens through theft (direct) or due to an income or work loss because of damages (indirect).
  • Schmerzensgeld: Compensation for psychological or physical damage to a person.
  • Gefälligkeitshandlungen: Compensation for psychological or physical damage to a person.
  • Beitragsfrei/Beitragspflichtig Mitversichert: Free coverage/Offered at an extra fee.
  • Begrenzt/Unbegrenzt: Limited or Unlimited policy coverage
  • Allmählichkeitsschäden: Long-term damage that needs further financial support after the accident (e.g: an injured person).

Is my Family Insured?

Liability Insurance basically covers only for yourself, if you opt for Family Tarif, then the whole family including Kids are insured under the same plan. Its not required to take Individual Insurance for the family members.

How to Report?

Follow these steps to report the incident with your Insurance company.

  • Report the Damage to the Insurer
  • Explain the situation, how the damage happened
  • Photos of the Incidents must be documented and sent to the Insurance company

Comparison of Liability Insurances Germany

We are comparing here the offers by the best insurance providers in Germany. All of these guarantees good values, available at a nominal price, and you can buy them online.

1. Getsafe

Get Safe is an online insurance company that focuses on providing services to Expats and foreigners living in Germany.

  • ✅ Their liability insurance starts for €3.60 per month (50 Million Euro coverage).
  • ✅ They have an English-speaking customer support team that makes your life easy.
  • ✅ You can pay them with a credit card or SEPA-debit.
  • ✅ The insurance is not for a fixed duration, and you are free to cancel it at any time.
  • ✅ Drone coverage can be added as ADD-ON
Source: Get Safe
2. Feather

Feather is an English speaking online Insurance company which provides services to all EXPATS

  • ✅ Insurance Starts at 4,99 euros a month for a single person.
  • ✅ The coverage is  up to 10 million euros.
  • ✅ Partner or Kids can be easily added added to the Policy.
  • ✅ signing-up process is easy and its completely in English. Customers are in love with their great customer service.
  • ✅ The insurance is not for a fixed duration, and you are free to cancel it at any time.
Source: Feather
3. Adam Riese

Adam Reise is a Digital Brand of the German Financial Service Provider W&W.

  • ✅ starting price from €22.71/year (€7.5 million coverage).
  • ✅ They have three different plans available, and you can choose one as per your requirements.
  • ✅ you get the freedom to cancel the insurance daily.
  • ✅ Your children up to 18 years old are automatically insured  (as long as they are still studying or undergoing training) under the Family plan.
  • ✅ Drones can be included in their XXL Plan
Source: Adam Riese

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There are certain companies that offer a discount when you purchase multiple insurances together. So, if you plan to take Liability insurance, Legal insurance and Household insurance together, do check if the provider offers a discount. ARAG Offers special Discount if you choose a combination Package. Click this LINK to claim the offer

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There are thousands of options available in the market, but we always recommend you to read the conditions before choosing the right Insurance. Some Insurance includes the 150 Euros deductible on every claim, which is generally overseen. If you are facing difficulties in understanding the Insurance conditions in German Langauge, you can visit the consultant and get them clarified personally and there are options if you take it as a Combo Package, you receive a special discount through them.

Online Comparison – Liability Insurances

If you are looking for offers from other companies, Kindly use our Comparison Calculator

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