Why every business needs it
Liability insurance protects you against claims for damages by third parties. Third parties are not only customers and visitors but also, for example, neighbours or people you have no contract with at all. Justified claims are settled, unjustified or excessive ones are fought off. Many businesses underestimate that second part, the legal defence built into the policy.
Claims for damages, together with the cost of experts, lawyers and courts, quickly reach six or seven figures. What matters most is therefore a sufficient sum insured. We recommend at least five million euros combined for personal injury and property damage, and the trend is towards higher figures.
Which modules make sense for you
Commercial liability policies are divided into cover with and without product liability. For advisory professions, financial loss liability is added. Some businesses need more than that: extended product cover and insurance for the cost of a product recall.
Special clauses are needed for suppliers to the automotive and aviation industries, for offshore installations, for packaging firms and for food producers. Cover always belongs adapted to the risks that actually exist, not to a standard form.
Do not forget the environmental risk
The environmental risk falls into two parts: liability towards third parties, covered by environmental liability insurance, and liability for nature itself under the German Environmental Damage Act, covered by environmental damage insurance. Both belong in a good commercial liability policy, at least in their basic form.
Beyond that it has to be established which individual environmental risks exist in your case. How large could a fire spreading beyond your premises become? Do you operate installations subject to the Federal Water Act or the Environmental Liability Act? How far is your site from the nearest body of water, including groundwater? Under the Environmental Damage Act the authorities can order remediation measures, the cost of which is borne by the party responsible. The loss potential here is considerable.
We analyse your risks together with you.
Tell us what your business does. We will tell you where you are liable and what that costs.