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Liability Insurance Statistics, Trends and Facts (2025)

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](https://www.gdv.de/gdv/themen/gesellschaft/versicherungsschutz-versicherungsdichte-ueberversicherung-49418) and **79%** [consider it a crucial type of insurance](https://www.versicherungsbote.de/id/4912070/Diese-Versicherungen-sollte-jeder-besitzen---finden-die-Deutschen/?gallery=kxctq). 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](https://www.bremer.com/insights/personal/2023-02-07-protect-yourself-with-an-umbrella-insurance-policy) 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.


![](https://storage.googleapis.com/popsure-blog-content/1/2025/06/3-Region-by-market-size-1024x614.jpg)
**Source**: [Precedence Research](https://www.precedenceresearch.com/liability-insurance-market), [TechSci Research](https://www.techsciresearch.com/report/liability-insurance-market/27890.html#:~:text=The%20global%20Liability%20Insurance%20Market,It%20also%20reduces)


### **Top 5 countries by liability insurance market size**


Here is the breakdown of the 5 countries with the largest liability insurance markets:


![](https://storage.googleapis.com/popsure-blog-content/1/2025/06/1-Countries-with-the-largest-insurance-markets-1024x614.jpg)
**Source**: [Agency Checklists](https://agencychecklists.com/2025/03/24/naic-2025-market-share-top-25-other-liability-insurers-75017/#:~:text=The%20Other%20Liability%20insurance%20market,amid%20a%20challenging%20claims%20environment), [market.us](https://market.us/report/liability-insurance-market/), [CEIC Data](https://www.ceicdata.com/en/china/insurance-premium/cn-insurance-premium#:~:text=China%20Insurance%20Premium%3A%20PI%3A%20Liability,RMB%20mn), [Asian Business Review](https://asianbusinessreview.com/insurance/news/japans-general-insurance-sector-slated-for94b-2028#:~:text=Liability%20insurance%2C%20representing%208.9,cyber%20insurance%20and%20workers%27%20compensation), [France Assureurs](https://www.franceassureurs.fr/wp-content/uploads/fa-ra2022.pdf#:~:text=match%20at%20L1957%20Responsabilit%C3%A9%20civile,tr%C3%A8s%20h%C3%A9t%C3%A9rog%C3%A8ne%2C%20rassemblant%20des%20risques), [Statista](https://www.statista.com/outlook/fmo/insurances/non-life-insurances/general-liability-insurance/germany#users)


## 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: 


![](https://storage.googleapis.com/popsure-blog-content/1/2025/06/6-Most-common-forms-of-liability-insurance-1024x614.jpg)
**Source:** [BusinessDasher](https://www.businessdasher.com/small-business-insurance-statistics/), [Investopedia](https://www.investopedia.com/small-business/protect-small-business-getting-sued/), [The Zebra](https://www.thezebra.com/resources/research/small-business-statistics/), [Next](https://www.nextinsurance.com/blog/survey-small-businesses-lack-confidence-adequate-insurance/), [New York Post](https://nypost.com/2024/12/12/us-news/nys-bogus-legal-costs-hit-a-staggering-89b-as-nyc-ranked-second-worst-judicial-hellhole-in-us-report/)


## 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](https://casepacer.com/resources/chances-of-winning-a-personal-injury-lawsuit), [On the map](https://www.onthemap.com/blog/personal-injury-stats/), [Advocate Magazine](https://www.advocatemagazine.com/article/2022-march/common-issues-and-defenses-in-premises-liability-cases), [NOLO](https://www.nolo.com/legal-encyclopedia/how-much-can-i-get-for-my-personal-injury-case-and-how-long-will-it-take-new.html), [Risk \& Insurance](https://riskandinsurance.com/social-inflation-drives-57-surge-in-us-liability-claims-over-a-decade/#:~:text=Litigation%20costs%20drove%20a%2057,in%202023%2C%20Swiss%20Re%20reports)


## 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](https://www.businessdasher.com/small-business-insurance-statistics/), [Investopedia](https://www.investopedia.com/small-business/protect-small-business-getting-sued/), [The Zebra](https://www.thezebra.com/resources/research/small-business-statistics/), [Next](https://www.nextinsurance.com/blog/survey-small-businesses-lack-confidence-adequate-insurance/)


## **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](https://casepacer.com/resources/chances-of-winning-a-personal-injury-lawsuit), [On the map](https://www.onthemap.com/blog/personal-injury-stats/), [Advocate Magazine](https://www.advocatemagazine.com/article/2022-march/common-issues-and-defenses-in-premises-liability-cases), [NOLO](https://www.nolo.com/legal-encyclopedia/how-much-can-i-get-for-my-personal-injury-case-and-how-long-will-it-take-new.html), [Risk \& Insurance](https://riskandinsurance.com/social-inflation-drives-57-surge-in-us-liability-claims-over-a-decade/#:~:text=Litigation%20costs%20drove%20a%2057,in%202023%2C%20Swiss%20Re%20reports)


## 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.


![](https://storage.googleapis.com/popsure-blog-content/1/2025/06/5-Average-settlement-amount-by-type-1024x614.jpg)
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](https://www.onthemap.com/blog/personal-injury-stats/), [Brown and Crouppen](https://www.brownandcrouppen.com/blog/average-personal-injury-settlement-amounts/), [The Zebra](https://www.thezebra.com/resources/research/small-business-statistics/#lawsuit-statistics), [Risk \& Insurance](https://riskandinsurance.com/social-inflation-drives-57-surge-in-us-liability-claims-over-a-decade/#:~:text=Litigation%20costs%20drove%20a%2057,in%202023%2C%20Swiss%20Re%20reports), [InsuranceBusiness](https://www.insurancebusinessmag.com/us/news/breaking-news/will-nuclear-verdicts-impact-the-insurance-industry-in-2025-519537.aspx#:~:text=Brian%20Pierce%20,from%20%2421%20million%20in%202020), [Allianz](https://commercial.allianz.com/news-and-insights/news/liability-claims-2024.html#:~:text=US%20juries%20have%20ordered%20a,highlights%20five%20liability%20loss%20trends)


## 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:


![](https://storage.googleapis.com/popsure-blog-content/1/2025/06/2-Cost-of-liability-insurance--1024x614.jpg)
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](https://www.forbes.com/advisor/business-insurance/small-business-insurance-statistics/), [Feather Insurance](https://feather-insurance.com/blog/liability-insurance-germany-guide/), [Brown and Brown](https://www.bbrown.com/us/insight/commercial-insurance-risk-management-market-trends-quarter-1-2025-2/#:~:text=)

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Is liability insurance worth the cost? [2025 Data]

One morning you’re riding your bike on your way to work when you collide with a pedestrian. They’re taken to the hospital and it’s discovered they’ve suffered a broken leg and their bag full of photography equipment is destroyed. 


As a result of the accident, they can’t work for 8 weeks and will need to replace all of their equipment. Under German law, you’re liable to cover their lost earnings and any damage to their property. You’re looking at thousands of euros in replacement costs and thousands more in lost earnings. 


Can you afford to cover them out of pocket? 


If you have [liability insurance](https://feather-insurance.com/personal-liability-insurance), you won’t have to. However, it’s hard to know how common accidents like this are and if you’ll find yourself in one. 


Here’s some information to help you decide if liability insurance is worth it for your lifestyle. 


## How popular is liability insurance in Germany?


Let’s face it, everyone experiences moments of inattention occasionally and mistakes happen. Sometimes, those mistakes lead to someone or their property getting damaged. Under German law, anyone who causes damage to another person or their property is [liable for compensation](https://www.gesetze-im-internet.de/bgb/__823.html). 


Liability insurance is there to cover you financially from damages, injuries, and financial loss caused to another third party, along with any associated legal expenses 


While it isn’t a compulsory form of insurance, it’s a popular form of personal insurance in Germany. [83% of Germans](https://www.gdv.de/gdv/themen/gesellschaft/versicherungsschutz-versicherungsdichte-ueberversicherung-49418) have liability insurance and [79% consider it a crucial type of insurance](https://www.versicherungsbote.de/id/4912070/Diese-Versicherungen-sollte-jeder-besitzen---finden-die-Deutschen/?gallery=kxctq). 


To learn more about liability insurance and what it covers, [check out our comprehensive guide](https://feather-insurance.com/blog/liability-insurance-germany-guide/).


## What does liability insurance cost?


Liability is one of the cheaper [types of German insurance](https://feather-insurance.com/blog/types-of-insurance-germany/) available. For example, the tariff cost for a 30\-year\-old single, child\-free person ranges from €1\.04 per month for the cheapest plans up to €16\.24 per month for the most expensive. 


For plans that cover a partner, tariffs can cost between €2\.85 and €19\.09, while for families this can range from €3\.27 up to €22\.03\. That means for the price of a cup of coffee you can get €5 million worth of coverage. 


It’s worth keeping in mind that the exact cost of your tariff will depend on your individual circumstances and lifestyle, such as:


- The level of coverage you’re looking for
- If your plan includes a deductible
- The number of people you’re looking to cover
- Coverage for items like drones or side hustles


 We recommend [getting a personalized recommendation based on your lifestyle](https://app.feather-insurance.com/recommendation-tool/intro) to ensure this is the right level of coverage for you. 


## What financial protection does liability insurance offer?


The main benefit of having liability insurance is financial protection from costs due to accidental damages and injuries to another person. This peace of mind comes relatively cheaply. 


From €4\.94 per month, you can get up to €50 million in coverage. A high\-level of coverage is necessary in an accident involving another person.


For example, if you collide with another person on your bicycle and they suffer spinal damage, you might be [liable for damages of more than €5\.3 million](https://www.genre.com/us/knowledge/publications/2022/june/cfpc22-1-en). Trying to pay for these costs out of pocket is impossible for the average person.


Not every accident will lead to damages amounting to millions of euros, but that doesn’t mean they don’t pose a financial risk. According to data from our analytics team, the most common claims submitted are for damage to another’s property (83\.3% of claims), key loss (16%), and injury to others (0\.7%). 


The average liability insurance claim amount is €569\.24 and the average person will submit a claim less than 1 year (262 days) from when they start their coverage. Looking at the same data shows that they will submit more than one claim over the course of a policy. 


So what does this mean for you? Let’s say you accidentally break a friend’s Macbook Pro and it can’t be repaired. The cost of replacing it will be at least €1900\. If you’re a single person paying €4\.94 per month for a tariff, the claim amount equates to more than 20 years of premiums. 


That means your coverage for accidental damages will almost always exceed the amount of money you’ll pay in tariffs. 


## What are the alternatives to liability insurance?


One of the most common objections to getting liability insurance is the cost of a tariff. While a relatively cheap form of insurance, the costs of a tariff add up over time. This can end up being money that’s not saved or invested elsewhere (especially if you don’t make up any claims). 


It can be tempting to think the risks of an accident are low enough that you’ll be able to cover damages out of pocket. Here are three alternatives to liability insurance and where they might work compared to a policy: 


1. **Savings account:** Using money from a savings account for emergency expenses is one alternative to liability insurance and has the advantage of not having to pay a tariff. This approach works best for small claims, usually a few hundred euros. Larger claims could take a considerable bite out of your savings or deplete them entirely.
2. **Credit card:** Using a credit card to pay for damages is another alternative to liability insurance. This approach can work for small claims amounting to a few hundred to a few thousand euros, depending on your credit limit. However, with this approach your total costs are even higher due to interest rates that reach up to 20%.
3. **Financing:** A last alternative is taking out a personal loan from a bank or lending institution to pay for larger damages. Unlike a personal credit card or savings, you can access larger amounts of money. This can work for larger claims but you’ll end up repaying considerably more in interest, and many people would also prefer using a large loan for a mortgage rather than paying off debt.


While there are alternatives to liability insurance, they typically work best for small claims provided you have savings or access to credit. Using them to cover larger damages out\-of\-pocket can put you in a worse financial position.


## Conclusion


So, is liability insurance worth it? It is if you want peace of mind and financial protection for a small monthly amount. 


While the average liability insurance claim amount is under €600, you’ll likely submit more than one claim in your lifetime.  You’re also protected against larger damages that involve injury to another person. 


If you’re ready to get liability insurance, make sure that you’re getting the right coverage and product for your individual situation. 

[BP] is liability insurance worth it