Personal liability insurance in Germany: what it pays and what to check

Personal liability insurance (Privathaftpflicht) examines claims, defends you against unjustified demands and pays for insured damage up to the agreed limit. Personal injuries in particular can trigger very high claims.

In short: In Germany, anyone who negligently causes damage to someone else must pay for it – without any limit and, if necessary, with all their assets (section 823 BGB). Personal liability insurance pays justified claims and fends off unjustified ones. That makes it one of the most important types of insurance there is, and it is comparatively cheap. Choose a lump-sum cover limit of at least €10 million.

Why personal liability insurance matters so much

One moment of carelessness is enough: you overlook a pedestrian while cycling, she falls and is left with a permanent impairment. Medical costs, compensation for pain and suffering, loss of earnings, care costs and recourse claims from health and pension insurers can then add up over decades. Claims like these quickly exceed any private assets. You can pay for small property damage yourself if necessary – but not for personal injuries that threaten your livelihood.

What is covered – and what is not

Situation	Covered by personal liability?
You injure another person while cycling	Yes – personal injury including pain and suffering and follow-up costs
Your bath overflows and damages the flat below	Yes – damage to your neighbour's property
You lose the key to your rented flat or office	Only with the lost-keys module
Damage to your rented flat is found when you move out	Partly – damage to rented property yes, normal wear and tear no
You drop a borrowed camera	Only with policies that include borrowed items
You damage your own phone	No – your own belongings are never covered
Damage caused with your car or by your dog	No – that is what motor liability and dog liability insurance are for
Damage caused on purpose	No – intent is excluded

Policy checklist: the benefits that matter in everyday life

1. Cover limit: At least €10 million lump sum for personal injury, property damage and financial loss; many policies offer much more. Also look out for lower sub-limits for individual types of damage.
2. Children below the age of liability: Children under seven – under ten in road traffic – are generally not liable themselves (section 828 BGB), and parents only if they breached their duty of supervision (section 832 BGB). Without this module, the injured party – often friends or neighbours – is left with the damage.
3. Damage to rented property: Damage to rented flats, holiday homes or hotel rooms should be covered to a sufficient amount.
4. Lost keys: If a key to a master key system is lost, replacing the system can be very expensive – including at your employer.
5. Favours for friends: When you help someone move house, you are often not legally liable. Good policies pay anyway so that friendships do not suffer.
6. Default cover: If someone damages your property and can neither pay nor is insured, your own policy steps in.
7. Drones and model aircraft: Insurance is compulsory for these by law (section 43 LuftVG). Many policies include small drones up to a weight limit.

Single, couple or family policy?

A family policy usually covers your spouse or partner and children – adult children generally as long as they are in their first training or degree course. If you move in together, one joint policy is often enough and you can usually cancel the second one. More in our guides to your first flat and starting a family. Use the needs check to see whether personal liability comes first in your situation, and compare policies in the comparison.