Whether out of carelessness, mishap or forgetfulness: Anyone who causes damage must answer for it. This is regulated by law. The party causing the damage must compensate the injured party – in an emergency, with all his or her assets, house and property, bank balances, wages and salaries. Even a later inheritance or a lottery prize can be accessed.
If you want to protect yourself and your family comprehensively, you need liability insurance. It insures the financial risk that may be incurred by the person who caused the damage.You can also check the 7 Important Features of Professional Liability Insurance for more info.
What does private liability insurance cover?
Only liability insurance protects the insured person and his family against claims for damages. It provides more than just compensation for material damage. First, it checks whether and to what extent there is any obligation to pay compensation.
Services at a glance:
The costs of restoring or replacing the damaged items
The costs for consequential damage, such as loss of use
For injured persons:
Salvage costs
The liability insurance also fends off claims for damages that are unfounded. In such a case, if a legal dispute arises with the person claiming damages, the liability insurer will conduct the litigation and bear the costs. Liability insurance thus offers a kind of “passive” legal protection in the event of unjustified liability claims.
Insured persons do not receive benefits for damages they themselves suffer or which they inflict on each other. For example, liability insurance is also excluded:
Damage caused intentionally
pure contractual obligations such as the right to repayment of a loan
Fines and fines
Damage caused by the use of a water/aircraft or motor vehicle. There are special liability insurances for this.
Damage caused by dogs or horses. Animal keeping requires special policies.
The sum insured
The policyholder should make absolutely sure that sufficiently high insured sums are agreed upon. Especially in the case of personal injury, the claims of the injured party quickly reach millions.
Loss of receivables
Policyholders should keep the so-called loss of receivables in mind. After all, what happens if the policyholder is seriously injured by a cyclist, forcing him or her to convert his or her entire house to make it suitable for the disabled? Ideally, the liability of the cyclist pays. But if the biker has no insurance and is also insolvent, the accident victim is left empty-handed.
For such cases, some insurers offer a claim loss cover. This applies if justified claims of the policyholder cannot be met by the party causing the damage. In such cases, the liability insurer compensates the policyholder (instead of the causer).
Damages due to favours
Anyone who causes damage within the framework of a so-called service of friendship or a courtesy usually does not have to be liable himself. For example, moving house: If a friend accidentally drops the expensive television set, many courts assume that liability has been tacitly excluded. Otherwise, the helper would most likely not have been willing to help his friend.
In the case of favours, the private liability insurance of the helping friend does not compensate for the damage incurred. However, there are insurers that include favors and services of friendship.
Key loss
In principle, the loss of objects is excluded in liability insurance. BUT: The loss of keys can also be included in the liability insurance. The policyholder should simply check with his insurer.
Important: The benefit for the mere loss of keys is limited to exchanging the locks. Since this is very expensive in a tenement house, for example, the assumption of costs is usually limited or a deductible is due.
Compensation for pain and suffering
Compensation for pain and suffering is compensation in the form of money for damages that are not of a material nature, such as suffering due to psychological shock. Compensation for pain and suffering can be claimed by anyone who has suffered immaterial damage as a result of the fault or misconduct of the perpetrator. Even if there is strict liability, damages for pain and suffering can be claimed.
Liability cover in training and voluntary service
For legal trainees and prospective teachers, insurance cover usually ends with the first state examination. If a son or daughter completes a Federal Voluntary Service (usually lasting 12 months), the insurance cover remains with the parents’ liability insurance.
