General liability insurance for your business

General liability insurance is recommended for all business owners, freelancers, and company heads, especially those at risk of causing personal injuries, which can lead to large compensation claims.

In some regions and industries, general liability insurance is legally required, especially for high-risk professions. Check local regulations to see if this applies to you.

It typically covers property damage, personal injuries, environmental harm, and financial losses resulting from physical or personal damages. Legal defense against unjust claims is often included.

Coverage typically extends to business owners, full-time and part-time employees, interns, temporary workers, and sometimes subcontractors.

A starting coverage amount of €3 million is advised, with options up to €10 million available, depending on business needs and risk level.

General liability covers physical and personal damages, while professional liability (also known as errors and omissions) covers financial losses due to professional mistakes, like missed deadlines or miscalculations.

Generally, insurance is valid worldwide if your business is based in Germany. Coverage may cease if you relocate your primary business address abroad.

It covers “consequential financial losses” (losses due to physical or personal damage). However, “pure financial losses” require additional professional liability coverage.

Updating your revenue ensures that your policy remains aligned with your business risk. Ignoring this may lead to inaccurate coverage.