A customer slips on a wet floor in your office, your employee accidentally drops a heavy tool on a client's property, or you damage rented office installations. In Germany, businesses face unlimited liability for negligence. Public Liability Insurance (Betriebshaftpflicht) is your essential safety net.
Key Facts at a Glance
| What is covered | Personal injury and property damage that you, your employees or your business cause to others, including defence against unjustified claims. |
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| What is not covered | Pure financial loss from advice errors, damage to your own property, the defective work itself and intentional damage. Details |
| Who needs it | For practically every business and self-employed person with customer contact, a workshop or an office. |
| What does it cost | For small businesses and self-employed people usually around €100 to €300 per year, depending on industry, turnover and sum insured. Non-binding guide value (as of 2026); your premium depends on your situation. You can calculate your exact premium in the comparison calculator on this page. |
| What to look out for | Describe your activity precisely, choose a sufficient sum insured and include rented property and work-related damage at the customer's premises. |
The Story of John: A simple trip that could have derailed a business
Fictional example for illustration; all persons and events are invented.
John is an expat marketing consultant who runs a small digital agency in Rheine. Known for his creative campaigns, he regularly invites local clients and business partners to his cozy loft office for strategic workshops.
During one of these sessions, a client got up to check a whiteboard presentation. In doing so, he tripped over a loose extension cable in the conference room. The client fell awkwardly, breaking his wrist in two places. The consequences were severe: surgery, a hospital stay, and six weeks of complete inability to work. Since Germany holds businesses fully liable for safety negligence on their premises, the client sued John's agency for medical expenses and loss of earnings totaling €45,000.
Without a Public Liability Insurance, John would have had to pay this massive sum out of pocket, threatening the survival of his young business. Fortunately, his policy stepped in immediately. The insurer verified the liability, covered the medical fees and compensation costs, and settled the claim smoothly, letting John focus on his marketing.
Who Needs Public Liability Insurance?
In short: every business operating in Germany that interacts with third parties, has physical offices, or performs work on-site at client locations. Under the German Civil Code (BGB § 823), you are liable with all your present and future business and private assets for damages caused by your negligence.
Typical businesses that require Public Liability include:
- Freelancers & Consultants: If you meet clients in person or work from coworking spaces where accidents can happen.
- Trades & Craftsmen: If you drill into a water pipe at a customer's location or damage local structures during construction.
- Retailers & Shop Owners: If a customer slips on your premises due to wet floors or icy entrances.
- IT & Agencies: If visitors visit your office and trip over cables, causing injury or property damage.
What is Covered by Public Liability Insurance?
A high-quality policy protects you against three primary categories of damage claims:
- Bodily Injury (Personenschäden): Medical costs, rescue expenses, pain and suffering compensation, or loss-of-income pension if someone is injured due to your business operations.
- Property Damage (Sachschäden): Costs to repair or replace third-party items that were damaged or destroyed by you or your staff.
- Financial Loss (Vermögensschäden): Financial losses that directly result from a covered bodily injury or property damage (e.g., compensation for a client's business standstill because you severed a cable).
What Is Not Covered
Public liability insurance is the basic cover for every business. These points are typically not covered:
- Pure financial loss: Errors in advice, planning or software that only cost the customer money are covered by professional indemnity insurance.
- Your own work: If you have to redo defective work, the insurer does not pay for it; it only covers consequential damage to others.
- Your own property: Damage to your machines or inventory is covered by business contents insurance.
- Undeclared activities: Anything not included in the business description is often not covered.
- Intentional damage: Damage caused on purpose is not covered.
How I Help You in the Event of a Claim
As your broker, I am legally on your side, not the insurer's, and that matters most when something happens. This is how we proceed:
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1. Report it quickly
Let me know as soon as possible, by WhatsApp, phone, email or directly in the simplr app. Many policy conditions require prompt notification.
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2. Document everything
Keep photos, invoices, reports and the names of everyone involved. Good documentation speeds up processing considerably. How to write the claim report.
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3. No admission of liability
Do not promise the customer payment or a free repair before the insurer has reviewed the case. Document the damage with photos and a short report.
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4. I take care of the rest
I submit the case to the insurer, follow up and check the settlement. If the insurer refuses or cuts benefits, we look at the reasons together. What to do after a denial.
Compare Rates Yourself
Use our comparison tool to calculate premiums and find the best rates for your situation. You can sign up directly online.
Tip: When comparing tariffs, make sure they include: work-related damage (Tätigkeitsschäden), a performance update guarantee, an oversight clause (Versehensklausel), provisional cover for new risks and loss of third-party keys; for trades also Mangelbeseitigungsnebenkosten and Nachbesserungsbegleitschäden, depending on your situation the use of subcontractors. I am happy to check the tariffs with you.
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