German Liability Insurance: What You Need to Know
This page details everything you need to know about liability insurance in Germany, including what it is, why it is important and who needs it when living in Germany.
Believe it or not, you can be sued for a simple accident or mishap in Germany. From dropping a friend’s camera or losing your keys to crashing your bike or injuring someone on the sports field, you can be held liable for damages. On occasion, these can spiral into ruinous 6 or 7 figure sums that you will need to pay. And with no cap to the damages you may be held liable for, this can quite literally destroy you financially. They will come for your pay cheques, savings and even your inheritance – EEK!
Thankfully, there is simple and affordable solution in the form of German liability insurance, which covers you against damages that you cause to others or their property. And when in Germany, it is generally best to always do as the Germans do – with 85% of Germans opting for personal liability insurance, this is a clear endorsement as to the criticality and importance of this insurance type when resident in Germany.
⏰ In a rush? Head straight over to our favourite German liability insurance provider Feather and get signed up in just a few minutes.
❗Liability insurance in Germany is often referred to as private liability insurance, personal liability insurance, third-party liability insurance or Privathaftpflichtversicherung in German. All these refer to the same type of German liability insurance.
What is covered by German Liability Insurance?
German liability insurance is a simple and affordable insurance that covers you for damages or injury you cause to other people or their property.
As a rule, most policies cover:
🏠 Damages to your rented apartment
Most newcomers to Germany will be renting an apartment. And within rented accommodation, accidents happen. From rain damage on window sills and leaky washing machines to cracked bathroom tiles and scratched flooring, you may find yourself owing your landlord a decent chunk of change to cover renovation costs. German liability insurance will help ensure you are covered for damages and get your full rental deposit back at the end of the tenancy!
And better yet, liability insurance can actually help you find a rental apartment in Germany. Landlords tend to favour applicants with liability insurance as they know they will be covered in the event of damages to their apartment!
📷 Damages to other people’s property and possessions
Whether or not you are particularly clumsy, we all drop, spill, dent and break things. From dropping someone’s camera or spilling your frothy coffee all over your friend’s laptop to denting a wooden floor with your heels or breaking a wing mirror while on your bike, liability insurance will have you covered.
🤕 Injury or harm to others
When it comes to big liability claims in Germany, it most often concerns physical injury to others. For example, if you collide with a pedestrian while on your bike, you may be held liable for their medical bill as well as any lost income in the event they are unable to work as a result of their injuries. As you can imagine, treatment, rehabilitation and incapacity costs can quickly stack up into hundreds of thousands of euros.
🔑 Lost keys
If, like me, you have a habit of losing your keys, then liability insurance in German can prove invaluable, especially if you lose keys to a whole apartment block and your landlord needs to change out all the keys for the building.
➕ Family and pets
While often not included in a standard German liability insurance policy, you can often bolt on family members and small pets to your policy. This ensures they are also covered under the same policy in the event that they cause damage to another person or their possessions.
While your liability insurance may cover small pets (cats, hamsters, rabbits, etc.), the coverage does not extend to dogs. For this, you will need a specific dog liability insurance.
⚠️ What is covered by your liability insurance will vary from policy to policy. While the inclusions listed above are covered by Feather, our preferred German liability insurance provider, make sure you always know exactly what is covered before taking out a policy.
What is not covered by German Liability Insurance?
Unfortunately, liability insurance in Germany is not a free pass to wanton destruction! While your policy will cover a lot, it will not cover everything, including:
💻 Your own possessions
Your personal items and possessions are not covered by your German liability insurance. For this, you would need a household contents insurance instead.
😠 Intentional damage
German liability insurance only covers accidental damages. Unsurprisingly, any purposeful, deliberate damage will not be covered.
👔 Work-related damages
Personal liability insurance in Germany does not cover work activities if you are self-employed or a freelancer. For work-related coverage, you would instead need professional liability insurance.
🚗 Car accidents
If you own a car, any damages you cause to others or their vehicles when operating your car will fall under your car insurance cover. German liability insurance will not be applicable in this instance.
⚖️ Legal wrangling
If you find yourself in legal disputes with your landlord, employer or the authorities, then you will be needing legal insurance. Liability insurance will not cover your legal costs in these situations.
How much does German Liability Insurance cost?
When I first arrived in Germany, the possibility of being liable for millions in damages off the back of an innocuous accident filled me with fear. I thought “Here we go, yet another expensive insurance!”.
But unlike hefty monthly contributions for health insurance, pension insurance, unemployment insurance and long-term care insurance (that are taken directly from your pay cheque 😒), German liability insurance is decidedly cheap. In fact, our preferred policy with Feather starts at just €4.94 a month, which represents great value given the level of coverage and support that you receive.
Our favourite German Liability Insurance
Out of all the liability insurances on the German market, our favourite provider is Feather.
We like Feather because:
1️⃣ They are as expat-friendly as you get.
From their website and digital sign-up process to their contracts and customer support, everything is ultra clear, user-friendly and, most importantly, in English!
2️⃣ They offer a high-level of coverage.
Feather’s liability insurance policy insures you worldwide for up to €50 million. And better still, Feather guarantees to cover any claim that other German liability insurances would cover. This gives you one of the widest and most comprehensive covers on the market.
3️⃣ They are affordable.
Starting at just €4.94 per month, liability insurance with Feather is a small price to pay for both the peace of mind and protection should an accident happen.
4️⃣ They offer quick and easy cancellation.
With Feather, you are not tied into a burdensome contract. If you wish to cancel your liability insurance cover, you simply log into your account and hit ‘cancel’.
👌 All-in-all, if you are looking for an English-friendly, hassle-free experience and a policy that provides extensive coverage, then you will be hard pressed to find something more suitable than Feather’s German liability insurance policy.
So, should you get German liability insurance?
Ask any German and they will most likely tell you that taking out private liability insurance is the smart thing to do – after all, the person you are asking will almost certainly have a policy themselves!
At the end of the day, it is not a compulsory insurance and it comes down to your view of risk. But we suggest erring on the side of caution – at the end of the day, we feel no-one should be risking bankruptcy for the price of a coffee. Accidents happen in a flash, but can leave you in perennial financial peril!
Do not risk it, take the insurance. And the sooner the better as most policies will start immediately upon signing up.
We hope you have found this quick overview of German liability insurance helpful! While it may not be common in your home country, it is certainly an insurance worth having in Germany.
For further information about life in Germany and how you can make the most of your move, see our homepage and other blog posts.