In Germany, liability insurance offers essential features including:

• Third-Party Coverage: Protects against claims for bodily harm, property damage, and personal injury caused by the policyholder or their family members.
• Types of Liability Insurance: Personal liability insurance covers individuals for private mishaps, while professional liability insurance is for businesses and professionals, covering professional mistakes, omissions, or negligence.
• Coverage Limits: Policies have set maximum payouts, and choosing adequate limits is vital to protect one’s financial security against major claims.
• Optional Add-Ons: Policies may include add-ons for specific activities, pets, or additional liabilities.
• Legal Defense: Includes coverage for legal costs in defending against claims.

While not mandatory, liability insurance is crucial in Germany for financial protection and peace of mind. Without it, individuals and businesses risk significant financial loss and potential bankruptcy from liability claims.

It’s important to carefully review and compare policies to ensure adequate coverage for one’s needs and risk exposure.

Liability insurance helps safeguard against the financial fallout of accidental damages or injuries, allowing for a focus on daily and professional activities with greater confidence.

Top Tip:

It is essential that kids younger than 7 are explicitly included into your contract.

German Sherpa only provide those contracts where your kids are covered the right way!