Liability insurance protects insured persons against the financial consequences of damage they unintentionally inflict on third parties and for which they are responsible. Without insurance, the perpetrators would have to bear the costs in full. The liability insurance services differ depending on the provider and chosen tariff.
A liability insurance protects against important risks of everyday life. These include, for example, the repulsed wine glass on the expensive carpet of the neighbor or an accident of a pedestrian on icy sidewalks in front of their own house.
Personal liability pays for three types of damage: personal injury, property damage and financial loss resulting from personal injury or property damage. Even for pure or direct financial losses some insurers – but usually only limited – on.
The following table shows the damage typically incurred by liability insurance:
|example||Personal liability benefits|
|Deepened in his smartphone , a pedestrian runs without paying attention to the traffic on the road. A car driver can dodge him at the last moment, but drives against another car and suffers injuries to the spine.||The insurance covers not only the treatment costs but also any claims for damages . The insurer also pays for property damage to the vehicles.|
|The burning of decaying leaves causes so much smoke that the guests of an adjacent restaurant feel so disturbed that they leave the restaurant .||The operator demands damages for lost sales . This takes over a good liability insurance.|
|During the move , a helper stumbles over a step and drops just the box with the expensive porcelain dishes.||If so-called complacency damages are covered, the helper can rely on his insurance, which pays for the damage incurred.|
The liability insurance is one of the most important policies at all. Because the liability of private individuals under German law is unlimited , especially in the case of personal injury – even those caused by a mere mishap or carelessness – horrendous claims amounts are due. Depending on how seriously a person is injured, in addition to the costs of a hospital stay and medical care incurred, among other things, claims for damages or claims for loss of work
Therefore, the private liability insurance is one of the most important insurance. But although their services are extensive, there is the protection of the insurance from just a few euros a month . Those tariffs that offer a very good mix of price and performance can be found out quickly and without obligation with a comparison calculator.
The financial consequences of personal injury and property damage can be enormous. For this reason, it is particularly important for the private liability insurance, to agree on a sufficient coverage . In its test for liability insurance, Stiftung Warentest applies a minimum coverage of ten million euros for personal injury and property damage .
Some providers also break down the coverage amount for personal injury and property damage. In this case, the minimum cover for personal injury should be five million euros, and for property damage, one million euros. The agreed sum is then the maximum compensation that the insurer pays in the event of damage.
If insured persons are held responsible for damages which they have not caused, the liability will provide further valuable assistance . Through the so-called passive legal protection , the insurance fights off unjustified liability claims and claims for damages, if necessary also in court. The legal and attorney’s fees are borne by the private liability insurance. Anyone looking for active legal protection must also take out suitable legal expenses insurance.
Another important benefit of private liability insurance is the default coverage, also called bad debt insurance. With it, insured persons ensure that they receive the compensation they deserve after being harmed if the person causing the damage is insolvent and has no own liability insurance . The insurance therefore provides protection in the event that customers are damaged by a third party and the claims for damages can not be collected. However, default coverage only applies if the claim exceeds a previously agreed amount and the claim is legally binding.
The liability insurance also covers damage caused to smaller pets by third parties. Insurable include cats, guinea pigs and birds. For larger animals such as dogs or horses, additional protection is required by means of an own animal liability insurance.
In case of damage it is helpful for the insurance if the injured party can present proof of the value of the damaged property . However, those who no longer have or can find an invoice must, as a rule, not have to worry about the fact that personal liability does not pay. In principle, she can not simply reject a claim for damages if there is no invoice. In case of doubt, old bank statements or payment slips can be submitted to prove the value of a thing. It may also be helpful to have a current estimate for the same or similar thing.
The benefits of private liability insurance differ in some cases significantly. Depending on the tariff, insured persons can rely on their insurance in different situations. In other cases, they need a separate insurance cover:
✓ Services abroad: The contract protection generally applies not only in Germany, but also in a temporary form abroad. Many insurance companies offer worldwide protection for holidays, travel and other stays abroad for a maximum of one year. If customers want to live abroad for a longer period of time, it makes sense to ask the provider for the exact insurance benefits.
✓ New value or fair value: The liability insurance usually does not cover the value of new equipment , but only the time value of a damaged object. This means that the insurance does not pay the injured party the amount that would be needed to buy the damaged part. It only takes over the amount the object was worth at the time of the damage.
✓ Gross negligence: A good private liability insurance also applies in cases where damage has been caused by gross negligence or recklessness of the insured . Liability does not apply to someone who intentionally , deliberately, and intentionally inflicts harm on others. As soon as a claim can be proven, the insurance company reclaims it and demands that the claim settlement costs be reimbursed.
❌ Glass damages : A personal liability insurance comes by contract also for rented damages. The policyholders are then insured in their own rented apartment and in rented houses, holiday homes and allotments. In case of glass damage the insurance is not liable. For the right hedge tenants have to conclude an independent glass insurance or a household insurance including glass insurance. Important: Glass damage to the property of third parties are in turn covered by the liability insurance.
❌ Broken cell phone: For a damaged cell phone liability insurance comes only if the smartphone has been damaged by the intervention of third parties . Then the personal liability of the tortfeasor replaces the time value of the phone. If the owner is to blame for the damage, the private liability insurance does not pay. Here can help a separate mobile phone insurance. Experts doubt, however, that the cost of insurance to compensate for the benefits of a mobile phone damage.
❌ Professional liability : The private liability insurance is fundamentally different from the professional liability insurance. For certain professional groups such as lawyers, tax consultants, architects, interpreters and physicians such a professional liability is mandatory or recommended. With her, these are financially secured for the case of mis-advice and resulting claims for damages from customers.
According to the current investigation of the Stiftung Warentest, the costs for the liability insurance services vary depending on the offer between 50 euros and 177 euros per year . The contribution amount alone does not provide any information about recommended rates. Because top tariffs as well as offers with bad test results are cheap.
Before taking out private liability insurance, it is therefore advisable to compare different rates with a comparison calculator. With just a few clicks you can easily compare the services and costs. In this way, interested people quickly find a personal liability, their reliable protection they can count at any time.