Personal liability insurance is part of Germany's general insurance system of risk financing and offers protection against third party insurance claims. It protects the policyholder against damage or loss that he / she may unintentionally cause another person in the form of bodily injury or property damage. In general damage caused intentionally as well as contractual liability are not covered under personal liability insurance policies.

We also liked the following comment on personal liability insurance written by an anonymous user of an internet blog: “It costs app. €100 a year but is invaluable if you get into one of those freak accidents that your mother always warned you about. Such as swatting at a wasp in the beer garden and knocking your best friend's hearing aid into his beer or tripping while crossing the street and getting your hand wedged into a street-car switch, requiring the fire department to cut you free and stopping traffic at Stachus for half an hour, causing 50 people to miss their various airplanes/business deals/weddings. Your private liability covers such calamities. Or even minor cases of spilling a beer on someone's €500 Lederhose by accident, the insurance pays for either the dry-cleaning or a new pair of pants.”