Insurance in Germany – What Liability is Covered/Not Covered?

Liability Insurance in Germany: Covered vs. Not Covered

Liability insurance (Haftpflichtversicherung) in Germany is essential for protecting yourself financially in case you accidentally cause harm to people, property, or financial interests of others. Below is a detailed breakdown of what is covered and what is not under a standard liability insurance policy.

Covered (What Is Included?)

1. Bodily Injury (Personenschäden)

What It Covers: If you accidentally injure another person, the insurance covers their medical expenses, hospital bills, rehabilitation, and legal claims.
Example: You are cycling and accidentally collide with a pedestrian, causing them to break a leg. Your insurance will cover their medical costs.

2. Property Damage (Sachschäden)

What It Covers: Covers accidental damage to someone else’s property.
Example: You visit a friend’s house and spill coffee on their laptop, rendering it unusable. Your liability insurance pays for a replacement.

3. Financial Losses (Vermögensschäden)

What It Covers: If your actions cause financial harm to someone without causing physical injury or property damage, insurance may cover the financial losses.
Example: You accidentally lock a neighbor’s bike along with yours, making them late for work, which results in lost income.

4. Legal Defense Costs (Rechtsschutzkosten)

What It Covers: Covers lawyer fees, court costs, and settlements if you are sued due to a liability claim.
Example: Someone sues you for damages after an accident, and your insurance covers the cost of legal representation.

5. Tenant Liability (Mietsachschäden)

What It Covers: If you are renting, this covers accidental damage to the rental property that you may be responsible for, including:

• Scratched wooden floors

• Broken windows

• Damaged walls

Example: If a washing machine malfunctions and floods your apartment, damaging the flooring, your liability insurance covers the repair costs. Additionally, during your move-out process, the policy can help cover damages, easing the financial stress of transitioning to a new home.

6. Pet Owner Liability (Tierhalterhaftpflicht)

What It Covers: If your dog or horse causes injury or damage, your liability insurance covers the costs. (Required in some German states for dog owners.)
Example: Your dog runs into the street and causes a cyclist to fall and break their arm—your insurance covers the medical expenses.

7. Professional Liability (Berufshaftpflichtversicherung)

What It Covers: Covers mistakes and negligence in professional services, mandatory for some professions like doctors, consultants, and lawyers.
Example: A financial advisor gives incorrect investment advice, causing significant financial loss for a client.

8. Product Liability (Produkthaftpflichtversicherung)

What It Covers: If you manufacture or sell products, this insurance covers claims for defective products causing injury or damage.
Example: A toy manufacturer sells a toy that has a choking hazard, leading to a child’s injury.

9. Employer’s Liability (Arbeitgeberhaftpflichtversicherung)

What It Covers: Covers work-related injuries and claims by employees against employers for unsafe conditions.
Example: An employee gets injured at a construction site, and the employer is held liable.

10. Injuries to Other People

What It Covers: If you unintentionally injure someone, Haftpflichtversicherung covers:

• Medical bills

• Compensation for lost income

• Legal expenses

Example: If you trip someone while walking your dog or accidentally hit someone with a ball during a park game, the insurance manages the financial claims that may arise.

11. Family Coverage

What It Covers: Most liability insurance policies extend their coverage to your family members, including:

• Spouses

• Children:

  • Children over six are covered until they complete their education.

  • Children under seven may require additional coverage, as some policies exclude them.

This ensures comprehensive protection for your entire household.

 Not Covered (Exclusions & Limitations)

1. Intentional Damage (Vorsätzliche Schäden)

What It Doesn’t Cover: If you deliberately cause harm to someone or their property, your insurance will not cover the damages.
Example: You punch someone during an argument and break their nose—this is not covered.

2. Damage to Own Property (Eigenschäden)

What It Doesn’t Cover: Your own belongings are not covered under liability insurance.
Example: If you drop and break your own phone, insurance won’t pay for a replacement.

3. Professional Activities (Berufliche Tätigkeiten)

What It Doesn’t Cover: Work-related damages are excluded unless covered under professional liability insurance.
Example: A doctor makes a medical error—personal liability won’t cover it, but medical professional insurance will.

4. Motor Vehicle Accidents (KFZ-Haftpflicht erforderlich)

What It Doesn’t Cover: Car accidents are not covered; Germany requires separate car liability insurance (Kfz-Haftpflichtversicherung).
Example: You crash your car into another vehicle—this must be covered by auto insurance.

5. Contractual Liabilities (Vertragliche Haftungen)

What It Doesn’t Cover: Breach of contract or financial penalties due to failing contractual obligations.
Example: You sign a contract to complete freelance work but miss the deadline, causing financial loss to your client—not covered.

6. Illegal Activities (Illegale Aktivitäten)

What It Doesn’t Cover: Criminal actions or illegal activities are not covered.
Example: You steal a bicycle, and the owner sues you for damages—insurance won’t cover this.

7. High-Risk Activities (Riskante Aktivitäten)

What It Doesn’t Cover: Some extreme sports or high-risk activities may be excluded unless specifically covered.
Example: Injuries from skydiving may not be covered unless explicitly included in your policy.

8. Damage Caused by Children Under 7 (Kinder unter 7 Jahren)

What It Doesn’t Cover: In Germany, children under 7 are not legally responsible for damages they cause, so claims may be rejected.
Example: Your 5-year-old child throws a rock at a car window—insurance may not cover it unless special child coverage is included.

Official Website for More Information

For comprehensive and authoritative information, you can refer to the Federal Financial Supervisory Authority (BaFin) website:
➡️ BaFin Official Website