Private liability insurance (Privathaftpflichtversicherung) protects you from the financial consequences of accidentally causing damage to others – whether it's a knocked-over glass of red wine on an expensive carpet, a bicycle accident causing injury, or a friend's smartphone slipping out of your hands. At Spreefinanz, we advise you personally and in English or German, so your coverage fits your life – whether you live in Germany, have just arrived, or travel internationally.
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The legal basis is clear: under Section 823 (1) of the German Civil Code (BGB), anyone who injures another person's property, body or health is "liable to compensate the other party for the resulting damage" (source: gesetze-im-internet.de, translated). The crucial point: this liability is unlimited. You are liable with your entire assets and future income – a single moment of carelessness can become a lifelong debt trap without insurance.
That is exactly why private liability insurance is considered the most important policy in Germany after health insurance. According to an analysis by the German Insurance Association (GDV) based on the 2023 Income and Consumption Survey, almost 90 percent of households in Germany now have this basic protection. GDV Director General Jörg Asmussen sums up the trend: "Citizens are protecting themselves more comprehensively against everyday and existential risks" (source: gdv.de, translated). If you are among the roughly 10 percent without coverage, you are carrying an unnecessarily high financial risk.
Private liability insurance covers three types of damage – and additionally defends you against unjustified claims (passive legal protection):
If someone is injured through your fault, the insurance covers treatment costs, loss of earnings and compensation for pain and suffering. This is where the highest sums arise – for example, in the case of permanent damage after an accident. We explain how claims are settled in detail on our subpage Car Accident: Who Pays Compensation?.
If you damage someone else's property, the insurance covers the replacement value – from a friend's dropped phone (see Filing a Claim: Dropped Phone) to Rental Damage & Liability Insurance covering doors, sinks or fitted kitchens. Losing someone else's keys can also become expensive, especially with master key systems – learn more under Lost Keys & Liability Insurance.
If a third party suffers a financial loss without prior personal injury or property damage – for example, missing a flight through your fault – the coverage for so-called pure financial losses applies.
The sum insured is the maximum amount the insurer pays in the event of a claim. Germany's consumer advice centre (Verbraucherzentrale) recommends generous coverage: "You should agree a flat sum insured of at least 10 million euros" (source: verbraucherzentrale.de, translated) – 50 million euros is even better and often costs only a few euros more per year. Good policies are available from around 50 to 80 euros annually.
Look out for these policy features:
Report every claim to your insurer immediately, document it with photos, and never admit fault prematurely – the insurer handles the assessment. As a Spreefinanz client, simply use our online claim report (→ schadenmeldung) and we take care of the settlement with the insurer for you.
Good policies with a high sum insured cost around 50 to 80 euros per year. Family policies are only slightly more expensive and cover your partner and children as well.
No, it is not required by law. However, since you are liable without limit with your own assets under Section 823 BGB, it is considered the most important voluntary insurance of all.
Family policies cover spouses or partners, minor children and adult children in their first vocational training or degree. Singles choose the cheaper individual policy.
Good policies waive the defence of gross negligence and pay in full. In cases of intent, however, there is never any coverage.
Within Europe usually without time limit, worldwide for 1 to 5 years depending on the policy. If you emigrate permanently, coverage generally ends – then you need international liability insurance, which we are happy to advise you on.
Get properly covered now – book your free initial consultation with Sebastian Krüger (Calendly link) or start the Insurance Check.
Sources: Section 823 (1) BGB – German Civil Code, gesetze-im-internet.de · Verbraucherzentrale: "Private Haftpflichtversicherung: Ein absolutes Muss für alle!" · GDV – German Insurance Association, analysis of the Income and Consumption Survey (EVS) 2023 · Updated: 2026
We advise expats in Germany on everyday risks. You get a clear recommendation on private liability insurance – coverage, limits and claims handling explained clearly, in German and English.
When something happens abroad, every hour counts. We are available via WhatsApp, video call or phone – across time zones.
You see what really matters: coverage scope, limits, exclusions and how claims are handled – compared clearly side by side.
Posting, workation or permanent move: we check whether your existing cover is enough – or which international solution fits.
From claim reporting to settlement – we guide you through the process, regardless of which country the incident occurred in.
Request your personalised comparison quote here.
