People and property
Business liability typically concerns bodily injury and property damage, plus resulting financial loss, arising from the business and its employees.
Self-employment & business · liability
Business and professional liability insurance: separate risks correctly.
An injury at business premises, damage to a customer's property and pure economic loss caused by advice are not the same. Cover must expressly reflect the actual activity, business structure and type of loss.
Business riskProfessional errorPure economic lossDescribe activities precisely
Which liability policy fits which work?
Market terminology is not always uniform. What matters is which losses, activities and people the specific policy actually insures.
Profession-specific errors
Professional liability is tailored to the particular risks of an occupation; the law requires it for certain professions.
Pure economic loss
Advisory, planning or administrative work often requires professional indemnity or pecuniary-loss liability insurance (Vermögensschadenhaftpflicht) for losses not preceded by bodily injury or property damage.
Typical protection and business limits.
Liability insurance generally does not cover the cost of correcting the insured business's own defective work. Within the described risk, it protects against statutory third-party claims.
Typical cover
- Assessment of statutory liability claims arising from the insured activity
- Defence against unjustified demands and indemnification against justified claims
- Bodily injury, property damage and resulting financial loss under business liability
- Cover for management and employees while carrying out business activities
- As required, cover for damage to property being worked on, rented property, keys, products, environmental risks or foreign activities
Points to check
- Performance, rectification and the company's own defective work are generally not liability losses.
- Pure economic loss generally requires expressly suitable cover.
- Intent, known defects and promises exceeding statutory liability are generally excluded.
- All activities, turnover, staff, premises and subcontractors must be recorded correctly.
- Product, recall, cyber, environmental and foreign risks require separate review.
Which cover is relevant for whom?
There is no blanket solution for every business. Industry, activity and possible type of loss determine the structure.
Business liability
Where people may be injured or third-party property damaged, the classic operational risk is central.
Professional indemnity
Anyone who advises on, checks, plans or administers other people's financial interests should expressly address pure economic loss.
Legal requirements
Some professions have compulsory insurance and minimum requirements. These must be checked for the particular profession.
Illustrative example
A customer's equipment is damaged during work.
An employee damages a customer's equipment while carrying out an insured activity. Whether business liability responds depends in part on the activity description and whether damage to property being worked on is included. Rectifying the company's own defective performance generally remains a business risk.
Illustrative example only — not personal advice and not a guarantee of cover, benefits or price.How MB Finance supports you.
We start with the activity, potential losses and existing business processes—not the product name.
Activities, industries, turnover, employees, locations and subcontractors are recorded systematically.
Bodily injury, property damage, resulting and pure financial loss are distinguished clearly.
Activities, products, environmental, cyber, key, rental-property and foreign risks are reviewed as needed.
Insured sums, sublimits, excesses, extended reporting periods and exclusions are set side by side.
New services, higher turnover, staff or locations can be incorporated into the cover.
We help with notification, documentation and communication with the insurer.
Related policies for the business.
Liability concerns third-party claims. The company's own assets, interruption losses and legal disputes require different modules.
Next related page
Continue to occupational disability insurance.
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Context, sources and notice
Cover is determined exclusively by the selected policy, policy schedule and insurance conditions. Benefits and loss scenarios mentioned here are examples, not a guarantee of payment. Legal requirements must be checked for the particular profession.