Is Private Liability Insurance Mandatory?
No, private liability insurance is not a legal requirement in Germany – unlike, say, motor liability for car owners or health insurance. Nobody can force you to take it out.
Nevertheless, it is considered the most important voluntary insurance of all. The reason: you are liable for damage you cause to others without limit, with your entire assets and income – a serious personal injury can cost millions and burden you financially for life. For a few euros a month, private liability insurance takes over these risks and also defends you against unjustified claims. That is why consumer advocates and we at Spreefinanz recommend it to every household without exception. Everything important about benefits, costs and policy features is on our guide page Private Liability Insurance.