Liability Insurance 101

What should you look for in a liability insurance policy? Are you getting the best deal? Find the answers here.

At this stage of your life, you’re probably already aware that personal liability insurance is very important in Germany. In fact, it’s so important that around 85% of households in Germany are covered by liability insurance. But it’s quite likely you’ve never really had to think about it much until now. Maybe you were co-insured on a family policy or you just took the first offer that looked good to you. Either way, insured or not, there are a few things to look out for when choosing a policy.

Note for career starters: Personal vs. professional liability

It’s important to bear in mind that we are referring to personal liability insurance. This means you are covered for third-party damage and losses that arise in your private life. For example, if you’re on the way to the shop and accidentally cause someone to fall off their bike and injure themselves. Personal liability insurance does not cover work-related activities. At work, you have limited liability for damage and losses; your employer usually bears some or all of the risk themselves. You can find out more about this principle here.

Is your policy good value for money?

A quick look at a comparison website will show you that personal liability insurance for a single person starts from just over €2 per month. But you should always dig a little deeper into the details before you make a decision. Here are some factors to consider:

• Excess: The excess is the amount of money you pay in the event of a claim. So if you choose an excess of €100, you will pay €100 yourself when you make a claim and the insurer will cover the rest. The higher the excess, the less you have to pay monthly. While this can seem attractive, the amount of excess you have to pay when you make a claim can later turn out to your disadvantage. Consider carefully how much excess you can really afford to pay. With Getsafe, you can choose your excess – so you have the flexibility to choose how much you pay per month.
• Total sum insured: This is the maximum total amount the insurer will pay out for a single claim. Comparison website Check24 recommends a minimum total sum insured of €10 million. Although it’s very unlikely a claim of this magnitude will be made against you, it does offer you additional protection as there have been claims in the millions. Getsafe insures you up to either €15 million.
• Other limits: Within the total sum insured, there are often separate limits for specific types of loss or damage, such as damage to rented property or key loss. Costs for a locksmith are not usually covered.

Do you have the coverage you need?

On a basic level, personal liability insurance protects you if you accidentally injure someone or damage their property. But there are many additional benefits and exclusions to look out for. Here are some of the most important things a career starter should look for:

• Activities covered: Playing sport is a great way to get to know your new colleagues. You should always check whether your liability insurance includes sporting activities, such as football, tennis and skiing, as you could easily accidentally injure someone or break their sporting equipment.
• Lock replacement: How many times have you turned your house upside down to find your keys? If this is a common occurrence for you, you should look for a policy that covers you if your locks have to be changed at your rented apartment.
• Damage to rented or borrowed property: If you’re renting a flat or apartment, you could be liable for accidental damage to the property. For example, if you accidentally leave the tap running and cause a flood that damages your apartment, you may have to pay the costs to repair it. A good liability insurance policy should provide sufficient cover against this.
• Bad debt protection: What if someone damages your possessions, but doesn’t have the insurance or money to pay for the resulting costs? Getsafe’s policy includes bad debt protection, so you’re covered if someone damages your property and cannot pay for it.
• Worldwide cover: Does your new job require you to travel? Lucky you! But you should make sure your policy covers you on your travels and during your stay in hotels – both on business trips and your well-earned holidays.
• Cancellation policy: No one wants to be tied down to a contract for years. We recommend choosing a policy that allows you to cancel anytime in case your needs change in future.

With Getsafe, you have the flexibility to cancel your policy any day. You are covered up to €15 million, including bad debt protection, cover for lock replacement and activities such as sport, babysitting and voluntary work. With no excess, our coverage starts at €3.25 per month – which is less than your coffee on the way to work or a beer with your colleagues. And if that’s a little too much for you right now, you can always decrease your monthly payments by setting an excess.