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personal liability insurance germany

Guide to Personal Liability Insurance in Germany

Life can be painfully unpredictable, putting people in undesirable situations that can be hard to escape, such as when someone sues you for hitting them, albeit unintentionally, while out riding your bike. If you get caught up in such a predicament, it’s almost impossible to get out of it financially unscathed. When you become liable for hurting them or damaging their property, you will have to pay for the damages. And in most cases, such payments can even lead to financial insolvency. Therefore, insurance providers offer liability insurance to save people from bearing hefty reparation costs. 

Liability insurance

Liability insurance is an indemnity program that takes care of monetary compensation in case of accidental damages. For example, you forget to clear the snow in front of your house, and someone slips on it and gets injured. They can sue you for it and demand you pay for treatment. Now even though you didn’t do anything on purpose, you will have to pay the price out of your pocket. But if you have liability insurance, your insurance provider will take care of all the damages, saving you from possible bankruptcy. 

Liability Insurance in Germany

Germany offers a variety of insurance policies to its citizens, some of which are mandatory, like health insurance. While liability insurance in Germany is not obligatory, it is advisable to make that investment because if you accidentally hurt anyone, you will have to bear the reparation expenses no matter what. 

In other words, if you injure someone in Germany, you will be held responsible for it even if it happened inadvertently. 

Since you never know when and where you might end up in an accident, you should purchase liability insurance just to be on the safe side. 

Third-Party Liability Insurance

Third-party liability insurance is the name given to a policy drafted to make up for the damages caused to a third party due to an accident you are responsible for. In Germany, you are not legally obligated to invest in such a financial security plan. However, most people get it to avoid paying wads of money due to accidental damages. 

There are two main types of liability insurance programs in Germany

  1. Personal liability insurance
  2. Professional liability insurance

Personal liability insurance

As the name implies, a personal liability policy covers damages when you cause an accident in your individual capacity. Meaning, you happen to injure someone while out for an errand or your morning jog, you will require personal liability insurance to pay for repairs. 

However, in some cases, personal insurance may not provide for the expenses incurred due to an accident. Scenarios involving an individual’s car or a large pet, such as a dog, are not taken care of with personal liability. Aside from that, if someone works in a dangerous occupation, then they also need a targeted insurance plan. These are the three exceptions when a liability insurance policy doesn’t work. 

Professional liability insurance

A professional liability policy covers the costs of damages caused by accident as part of your profession. For instance, you are an architect, and you design a lousy building, which collapses entirely or partly, hurting the occupants, then you will use a professional liability policy to bear the expenses. 

However, it must be noted that you don’t need the said policy if you are employed because then your employer is responsible for your insurance. Typically, freelancers get this program to prevent losing all their money in case a project turns out badly. Some professionals are legally obligated to purchase a professional liability policy, including

  • Architects
  • Freelance medical professionals
  • Web designers
  • Lawyers
  • Tax professionals
  • Civil engineers
  • Cooks

Choosing a Liability Insurance Policy in Germany

Germany offers not only various insurance policies but also many providers for residents and ex-pats to buy their program from, based on their needs. While having a bunch of choices to pick from is a good thing, for the most part, it can turn decision-making incredibly challenging. To help you with the process, we will share some tips to get legal insurance. Germany can easily qualify as the land of insurances and insurance providers. If you want to choose one, you should consider the following pointers. 

  • How much coverage do you think you might need?
  • Can you afford the premium?

Generally, people go for the cheapest option to save money, not realizing that their decision might cost them a lot more in the long run. Obviously, if your plan doesn’t cover damages above a specific amount, you will have to make up the difference out of your pocket. Therefore, pick the best one instead of looking for a program with the lowest price tag. 

Terminating an Insurance Deed in Germany

While acquiring insurance in Germany is fairly easy, terminating it isn’t because you cannot end a deed before its term is over. And when you decide to close an insurance deal, you need to inform your provider three months in advance. You can also change your service provider if you feel the need to do so, but to do that, you will have to inform them three months before the term end-date. 

Want Insurance?

If you are looking for a top-notch yet reasonably-priced insurance policy in Germany, reach out to us at MW Expat and save your future from unnecessary financial burdens.

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