Business liability insurance for the self-employed in Germany

A knocked-over TV, water damage in a kitchen, a fall of the senior you care for: as a self-employed person you are liable under German law for damage you cause to clients – with all your private assets. Business liability insurance protects you. Private liability insurance usually does not cover work-related damage.

Business or professional liability?

• Business liability (Betriebshaftpflicht): covers personal injury and property damage caused at work. Typical for trades, cleaning, caretaking and care.
• Professional liability (Berufshaftpflicht): covers pure financial loss from advice or planning errors; mandatory for some professions.

For most small businesses no liability insurance is required by law, but many clients and agencies ask for proof.

What good cover includes

• A sum insured of at least 3 to 5 million euros for personal injury and property damage.
• Damage to items you work on or use.
• Loss of keys – important in care and cleaning.
• Damage to rented premises.
• Cover in Germany and the EU if you also work at home.

What does it cost?

The premium depends on activity, turnover and sum insured. For sole traders in low-risk activities it is often in the low two-digit euro range per month. Compare conditions, not just prices. Premiums are tax-deductible business expenses.

Especially important for carers

In home care you handle other people’s property and people who need help every day. Make sure care work is explicitly insured, including key loss. Liability and status are closely linked – see our article on false self-employment.

Liability and health insurance

Liability insurance pays for damage to others; for your own health you need health insurance. Both are basics for every self-employed person.