Product liability for software, SaaS and AI from 9 December 2026
The new Product Liability Act applies from 9 December 2026. For the first time, software expressly counts as a product – including SaaS, apps and AI systems. If you develop software, build chatbots or integrate AI into products, you should review your contracts, update processes and insurance now.
Key points in brief
- Liability without fault for defective software placed on the market from 9 December 2026.
- Missing security updates can constitute a product defect.
- No exclusion: liability towards injured parties cannot be excluded by contract; the deductible and the maximum amount no longer apply.
- Private individuals are protected: personal injury, privately used property and private data. Financial losses of your business clients continue to be governed by the contract.
And what about AI?
The planned EU AI Liability Directive has been withdrawn. If you integrate an AI model from a major provider, you are liable to your client yourself; the AI providers' terms of use usually limit their liability severely. In addition, since 2 August 2026 chatbots must be recognisable as AI (Art. 50 KI-Verordnung (EU AI Act)).
What to do now
- Document update and security processes.
- Have a lawyer review your terms and conditions and limitations of liability towards business clients.
- Check whether your IT liability insurance expressly includes AI, SaaS and hosting.
You'll find all the details, typical claims and our partners (Hiscox, Markel, VHV and Stoïk) on our guide page AI, SaaS, chatbots and hosting: liability for IT service providers.
Note: General information, as of October 2026, no legal advice. Source: Directive (EU) 2024/2853 and its transposition into German law.