Business liability insurance in Germany
A company in Germany is liable for the damage it causes to others, in principle without any cap. Business liability insurance (Betriebshaftpflicht) is therefore the first policy a German GmbH or branch puts in place.
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Local policies for foreign subsidiaries
Under the German Civil Code, anyone who culpably injures a person or damages someone else’s property has to compensate the loss in full. For a company that includes the acts of its employees. For defective products the Product Liability Act adds liability regardless of fault.
Betriebshaftpflicht combines what English-speaking markets often split into separate covers: public liability, product liability and usually a basic environmental liability module. The insurer pays justified claims and defends the company against unjustified ones, in court if necessary.
Is business liability insurance mandatory in Germany?
For most businesses there is no statutory obligation. In practice you will rarely operate without it: commercial landlords, customers, general contractors and public tenders routinely ask for a certificate with specified limits. For some regulated professions and trades, liability insurance is compulsory by law.
What is covered?
Bodily injury
Injury to customers, visitors or business partners caused by your operations.
Property damage
Damage to third-party property, including work carried out at a customer’s site.
Consequential financial loss
Financial consequences of an insured injury or property damage.
Product liability
Damage caused by defective products; extended cover for removal and installation costs by agreement.
Defence of unjustified claims
The insurer examines the claim and defends you at its own expense.
Rented premises
Damage to rented offices or halls, within the limits agreed in the policy.
Which limits are usual?
Combined limits of €5 million to €10 million for bodily injury and property damage are common today. Industrial risks and export business often need more. If your group prescribes minimum limits, the German policy can be set up as a local policy under the master programme.
What does business liability insurance cost in Germany?
The premium depends on the sector, turnover or payroll, the number of employees and the limits. As a rough guide, small office-based businesses often pay a few hundred euros a year, while manufacturers and exporters are rated individually. Insurance premium tax of 19% is added. Only a quote based on your actual risk is binding.
What foreign-owned companies often overlook
Cover only applies to the activities described in the policy. If the German entity moves from sales into installation, assembly or import, the business description has to be updated first.
Exports to the USA and Canada are excluded from many standard policies and need an explicit extension — also when your products reach North America indirectly through a customer.
There is no separate employers’ liability insurance as in the United Kingdom. Workplace accidents are handled by statutory accident insurance through the Berufsgenossenschaft, which is funded by employer contributions.
Who is behind this page
Vivid Protect GmbH, insurance broker licensed under Section 34d (1) of the German Trade Regulation Act (GewO), broker register no. D-Y7GD-S7M7K-61, managing director Alexia Manukwem. About us
General information, not legal or tax advice. Figures are orientation values and not an offer.
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FAQ
Frequently asked questions
Do I need business liability insurance in Germany?
It is not required by law for most businesses, but liability is in principle unlimited and extends to the whole of the company’s assets. Landlords, customers and tenders regularly demand proof of cover, so in practice almost every company carries it.
How much does business liability insurance cost in Germany?
Small office-based businesses often pay a few hundred euros a year. Trades, manufacturers and exporters pay more and are rated individually by turnover, payroll and product risk. German insurance premium tax of 19% is added to the net premium.
Does our group’s global liability policy cover the German subsidiary?
Often only partly. It depends on whether the insurer may write German risks, how German premium tax is handled and whether German counterparties accept the certificate. A German local policy integrated into the master programme is the common solution.
Is there employers’ liability insurance in Germany?
Not as a separate compulsory private policy. Workplace accidents are covered by statutory accident insurance through the Berufsgenossenschaft. In return, personal injury claims by employees against their employer are largely excluded by law.
Can we get a certificate of insurance in English?
Yes, where the insurer provides one — many do. We also explain the German policy wording to you in English and coordinate with your group broker or risk manager.
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