Anyone building a house carries considerable legal and financial responsibility throughout the construction phase. Builders liability insurance (Bauherrenhaftpflichtversicherung) protects you from compensation claims arising from your building project. Many builders underestimate this risk.
As the client (Bauherr), you are responsible for all damage that comes from your building site: a passer-by trips over unsecured building material, a vehicle is damaged by objects blown off the site, a neighbouring property is affected by earthworks. In all these cases you are liable as the client, whether or not you were on site yourself.
Builders liability insurance applies for the whole construction phase and covers personal injury, property damage and financial loss suffered by third parties. It is designed for private building projects and differs from commercial construction insurance. The policy runs for one year and renews automatically for another year.
Another point: even when friends and acquaintances help on the building site (so-called "Gefälligkeitshelfer", helpers doing a favour), liability questions can arise. Some tariffs explicitly include this group of people, which can be decisive in the event of a claim.
We guide you through the insurance aspects of your building project, from the right sum insured to necessary additions such as construction works insurance (Bauleistungsversicherung) or shell fire insurance (Feuerrohbauversicherung).
Builders liability insurance benefits
Sum insured: up to 75 million euros as a flat sum for personal injury, property damage and financial loss.
Areas covered:
- Damage to third parties caused by the building project
- Own work on the build (self-help, building planning, site management)
- Demolition work as part of the insured building project
- Work machines up to 20 km/h
- Self-propelled machines up to 20 km/h
- Forklifts up to 20 km/h
- Unregistered vehicles on non-public paths
- Private drone use for site inspection (max. 5 kg)
- Defence against unjustified claims, including court costs
Start of cover: from purchase of the plot.
Makes sense for: new builds (single-/two-family houses), converting a flat into an office, renovating/converting old buildings you have bought. Not needed for: renovating/converting your own property, modernisation.
Not insured: intentional damage, asbestos, claims by relatives living in the same household.
