Private liability insurance: an absolute must for everyone!
The essentials in brief:
- According to the law, you are liable for all damages you have culpably caused to someone else - up to an unlimited amount.
- With private liability insurance, even gross negligence is also insured. Only damage caused intentionally is excluded.
- Taking out private liability insurance is essential. The insurance covers a risk that threatens your existence.
Who needs what protection?
Everyone should take out private liability insurance because it protects against damage that can run into the millions of euros.
A distinction is made between the following tariffs:
- As the policyholder, you are the only one with insurance coverage with a single tax.
- In the family tariff, protection is extended to additional people. Joint private liability insurance is sufficient for spouses or people in a marriage-like relationship. However, in the case of cohabiting relationships, the partner should be mentioned in the policy. Children are generally also insured if they are still in their first uninterrupted training course.
For families and long-term partnerships who share a home, family tariffs are generally cheaper than taking out individual insurance.
Private liability insurance only covers the private sector. Professional or business liability insurance is essential (especially for freelancers/self-employed people). In some professions, financial loss liability insurance also makes sense.
Additional liability insurance should include:
- House and land owners of rented or undeveloped property
- Animal owners, for example, dogs and horses
- Oil tank owners
- builders
- Owners of motor and sailboats, surfboards, model aircraft and motor vehicles
- People in public service, because of the possibility of recourse claims from the employer
- Hunter
When does private liability insurance kick in?
In the event of a claim, it is the responsibility of the liability insurer to check whether the claims for damages made against you are justified. Liability insurance protects you comprehensively:
- If the insurer considers them unjustified, it will defend the claims at its own expense and risk. Liability insurance, therefore, offers so-called "passive" legal protection.
- If the insurer considers the claims against you justified, he will pay the damage. The prerequisite is no exclusion in the insurance conditions - for example, you did not cause damage intentionally (legally: intent).
The injured party should not profit from the damage. The liability insurer must follow this principle. Depending on the damage, these regulations apply:
- In the event of property damage, the repair costs are always paid. If the item is worth less after repair than before, there is also a surcharge for this reduction in value.
- In the event of a total loss, the current value of the insured item will be reimbursed. The current value is the replacement value of things of the same type and quality, considering age and wear. As a replacement for a used bicycle, the injured party would receive enough money to buy a similarly good, used bike.
- In the event of a personal injury, medical and hospital costs, costs for alleviating suffering, compensation for professional disadvantages, costs for restoring the ability to work, compensation for pain and suffering, compensation for permanent damage (e.g., pension payments), and other additional costs (e.g., nursing staff) can be claimed to be made.
How much should you insure yourself?
It is essential: In the cases mentioned, the insurer only pays up to the coverage amounts for personal injury, property damage, and financial loss stated in the insurance certificate. If the damage exceeds what you insured, you must pay the rest yourself.
Therefore, make sure you have enough insurance. You should agree on a flat rate of 10 million euros as the minimum coverage amount. The insurance should cover this amount in all three areas – personal injury, property damage, and financial loss.
Better – and available for just a few euros extra effort – is coverage of 50 million euros. Don't make a mistake: This damage can occur in accidents involving multiple people!
What is insured?
The dangers of everyday life are insured. Insurance coverage includes, among other things:
- if you neglect your duty to supervise minors (not only your own children but also those of others)
- in the event of a violation of traffic safety obligations (e.g., cleaning, gritting, and clearing snow on sidewalks)
- as pedestrians or cyclists (including electric bicycles ) in road traffic
- as a participant in private sporting activities such as football or tennis
- for damage that you cause with your own or other people's rowing and paddling boats, surfboards, or other people's (borrowed or rented) sailing boats
- as the owner of owner-occupied real estate (holiday apartments, holiday homes/weekend houses, condominiums)
- as a particular owner in condominium complexes, due to damage to common property
- for the loss of someone else's private apartment key or professional key
- as a builder for (conversion) construction work with a construction cost of at least 20,000 euros
- for the risk of water damage from common household water-harmful substances such as paints, varnishes, and heating oil up to 50 liters/kilogram of these substances
- for damages resulting from the exchange, transmission, and provision of electronic data
Often overlooked: What needs to be insured?
Favors: If you help others at their request (for example, moving) and cause damage through simple negligence, you are generally not obliged to pay compensation. You should discuss such courtesy services with the other person beforehand and, if necessary, look for suitable insurance.
Children who are not responsible: According to the law, children who have not yet celebrated their 7th birthday cannot be held accountable for damages. You are incapable of committing a crime. Children over 10 are only responsible for damage caused by moving traffic. If the parents have not neglected their duty of supervision, the injured party will not receive any compensation. However, you can look for a liability insurer who also insures children who are incapable of committing a crime - this way, you can avoid conflicts if your child causes damage.
Other vital clauses to pay attention to
Suppose you are injured by others who do not have liability insurance and cannot pay for the damage themselves. In that case, it is essential that your liability insurance steps in and pays you the wear. You should ensure that your liability insurer provides insurance coverage for these cases.
Ensure that any new risks arising during the contract term are initially insured without paying any premiums. Example: You have taken out private liability insurance and are buying a dog for which you need pet owner liability insurance. The dog is then insured free of charge until the next premium is due. So you can take out pet owner liability insurance.
When concluding the contract, you should ensure that the coverage amounts of this precautionary insurance correspond to those of the primary insurance. You must promptly report any new risks – i.e., the purchase of the dog – to the insurer.
When is insurance coverage at risk?
In the event of a liability claim, you may not acknowledge the share of the injured party or pay compensation without the insurer's written consent. So do not sign an admission of guilt or pay any money. Otherwise, this could jeopardize your insurance coverage.
You must report the damage to your insurance company immediately.
Where is insurance coverage available?
Private liability insurance is valid worldwide. However, the prerequisite is that the stay abroad lasts up to one year.
Within the European Union, your stay should be insured without a time limit - ensure this is regulated in your contract.
How is the contribution calculated?
Tariffs are offered for singles, married couples without children, families, and relatives for specific professional groups. Of course, this also impacts how expensive the contracts are.
Agreeing on a deductible per insured event reduces the premium - but it usually saves so tiny that it's better to avoid it.
It is usually cheaper to pay the insurance premium once a year instead of, for example, in monthly installments.
How can the contract be terminated?
Insurance contracts can be canceled with (usually) three months' notice to the end of the term. Without termination, the contract is automatically extended for another year. The agreement can be terminated annually with three months' notice.
You can also cancel in case of a claim or your premium increases.
Choose a suitable provider and tariff.
The differences in contributions and benefits between private liability insurance providers are enormous. If in doubt, get independent advice!
Orientation on private liability insurance
- Stiftung Warentest offers ,
- There can be independent insurance advisors - contacts can be found, for example, at their federal association,
- You can obtain it locally from your consumer advice center.
