Liability insurance covers you financially from damages, injuries, and financial loss caused to another third party, along with any associated legal expenses. It’s becoming a popular, and in some countries mandatory, form of insurance.
Although not a legal requirement in the country, 83% of Germans have liability insurance and 79% consider it a crucial type of insurance. This makes Germany one of the countries with one one of the highest penetration rates for liability insurance. In the US, by contrast, only 20% of American homeowners opt for extra coverage through an umbrella liability policy.
In this post, we’ll unpack the latest data on liability insurance, the costs coverage and the size of the global liability insurance market.
Top liability insurance stats (2025)
- $290.5B global liability insurance market valuation in 2024.
- $524.66B projected market size by 2034.
- 83% of Germans hold personal liability insurance.
- 54% of small U.S. businesses carry general liability coverage.
- 36–53% of U.S. small businesses face lawsuits annually.
- $18.8B in average annual liability claim payouts (2017–2021).
- 95% of personal injury lawsuits settle before trial.
- $1.3M average settlement in U.S. medical malpractice cases.
Global liability insurance market size
- $290.5B global liability insurance market in 2024, up from $275.24B in 2023.
- $524.66B projected market value by 2034.
- 90.6% expected growth over the decade.
- $126.61B market size in North America (2023), representing 46% of the global total.
- 25% market share for Europe, 21% for Asia in 2023.
North America remains the dominant region by market share, driven by strong commercial adoption and high litigation risk.
Source: Precedence Research, TechSci Research
Top 5 countries by liability insurance market size
Here is the breakdown of the 5 countries with the largest liability insurance markets:
Source: Agency Checklists, market.us, CEIC Data, Asian Business Review, France Assureurs, Statista
What percentage of businesses have general liability insurance?
- 54% of small businesses have general liability insurance.
- 40% operate without any insurance.
- 43% of owners have been threatened with legal action.
- 36–53% of small businesses are sued annually.
- 90% of businesses will face legal action during their lifetime.
- 75%+ of small business owners fear being targeted by a lawsuit.
- $89B estimated annual cost of excessive litigation to New York’s economy.
Here is the breakdown of the most liability insurance purchased by small business owners:
Source: BusinessDasher, Investopedia, The Zebra, Next, New York Post
What is the success rate in defending liability lawsuits?
- 70% of personal injury claimants receive compensation, either through settlement or court-awarded damages.
- 57% increase in liability litigation costs over the past decade.
- 95% of personal injury lawsuits settle before reaching trial.
- 50–60% of plaintiffs win when cases go to trial.
- 40–50% of defendants succeed in trial-based liability defenses.
Defense Success Rates by Case Type
| Case Type | Defense Success Rate |
|---|---|
| Medical Malpractice | 81% |
| Product Liability | 62% |
| Premises Liability | 61% |
| Motor Vehicle | 39% |
Out-of-court settlements remain the dominant resolution method. Defense outcomes vary widely by liability type, with medical cases showing the highest defense success rate.
Sources: Case Pacer, On the map, Advocate Magazine, NOLO, Risk & Insurance
What percentage of people have personal liability insurance?
- 83% of Germans hold personal liability insurance.
- 79% of Germans consider liability insurance essential.
- 20% of American homeowners purchase umbrella liability policies.
Germany has one of the world’s highest liability insurance penetration rates despite no legal mandate.
Source: BusinessDasher, Investopedia, The Zebra, Next
Payout Trends for Liability Claims
- $90.4B paid out across 530,000+ claims between 2017–2021.
- $18.8B in average annual liability payouts.
- $55B in U.S. motor vehicle liability payouts in 2023.
- 45% of U.S. liability payouts in 2023 stemmed from motor vehicle claims.
Motor vehicle incidents accounted for nearly half of all U.S. liability payouts in 2023.
Sources: Case Pacer, On the map, Advocate Magazine, NOLO, Risk & Insurance
What is the value of liability claims paid out?
- $31,000 median settlement across all U.S. liability cases.
- $24,000 median payout received by 50% of plaintiffs.
- $1.3M average payout for medical malpractice cases.
- $103,654 average settlement for truck accident cases.
- $97,517 average for dog bite cases.
While most payouts remain modest, exceptional jury awards (known as “nuclear verdicts”) are increasing in frequency and size:
- $44M median jury award in major liability cases (2023).
- 2x growth from $21M in 2020.
- 27% increase in jury awards over $10M in 2023.
- 40%+ of nuclear verdict value attributed to defective products.
In these cases, large-scale product liability claims drive the majority of high-value jury awards.
Source: On the map, Brown and Crouppen, The Zebra, Risk & Insurance, InsuranceBusiness, Allianz
What is the average cost of liability insurance?
In the United States, the average annual cost of general liability insurance is approximately $360. Average annual increases in the price of American liability insurance are typically between 5% and 10%.
Here is the estimated cost of different types of liability insurance in the United States:
In Germany, liability insurance is one of the cheaper forms of popular insurance with average policy tariffs ranging from €3.30 to €6.60 per month.
Source: Forbes, Feather Insurance, Brown and Brown
