Private liability insurance

When do you need a private liability insurance?

In Germany, you are legally obliged to pay full compensation regardless of your assets if you harm someone or his property.

As a rule, small mishaps are unproblematic, but if there are higher costs, it is quickly a matter of much more including even legal actions. It is therefore advisable that everyone in Germany has private liability insurance so that they do not have to pay for their entire life or if they suffer personal injury, just because not having paid attention for a moment.

What is insured in the German private liability insurance?

Cover for credit default
Loss of keys and code cards private and work related
Claims caused by Children under 7 years (legally not responsible for their doing)
Dog sitting / Dog walking
rented property
Self-propelled machines up to 20 km / h
Use of pedelecs (electric bicycles)
voluntary work
Photovoltaic systems up to 10 kwp
Loading and unloading claims
Damage while doing a friend a favor or act of kindness (e.g. as helping a friend moving apartments)

Do you have further questions about the private liability insurance, or would you like to receive an individual offer from us as an independent Claim Pro insurance broker (Versicherunsgmakler) from various insurance companies?

Then please fill out the following form or contact us via one of the communication channels offered on our website!

Here are following answers to common questions about the private liability insurance

Does the private liability insurance compensate the actual new price of a damage item?

No it doesn´t. If possible, damaged items will be repaired. The insurance then pays the costs of the repair. The insurance only pays compensation if a repair is disproportionately expensive or impossible. In that case the private liability insurance compensation is based on the current market value, i.e. the value of the damaged item at the time of the damage (Time Value).

This is calculated by subtracting use, wear and tear and any damage from the replacement value. This is often complex, sometimes even impossible. Therefore, insurance companies often use an average assumption of the lifetime of the damaged item to determine the current value.

There is often a downturn for the victim or effected owner with the current market value (Time Value): he does not get enough money to buy the damaged item newly again.

However, there are of course tariffs in the market that also insure the replacement value, so you would save discussions with the victim in the event of a claim. But it is to mention, that this replacement value often a limit, which is far under the insurance sum. Common limits are at around 2.500 €, so that only claims and damages till that amount would be paid for the item, any amount above will be reimbursed according the Time Value again.

Here it is also important to check exactly which insurance cover you would like to have and to request it explicitly. In our 21 years of professional experience, we can always find that even with a simple insurance, such as the private liability insurance, there are serious differences in the terms and conditions.

Some providers are suspiciously cheap and a report of the German federal cartel authority (Bundeskartellamt) is proving, that these offers have almost no insurance protection and includes contract clauses that are not customer friendly and usual market practice. Reference

Does the Private liability insurance also pays for damage caused by small children?

No, usually it doesn’t. Private liability insurance often protects not only the policyholder himself, but also his family. What surprises many parents, however, is that private liability insurance does not pay for damage caused by children under the age of seven.

It is therefore important to check this carefully before buying an insurance if you have kids under seven whether the insurer pays for damages caused by children under the age of seven and up to what amount.

Because children under seven years are never legally liable themselves, according German law. They are considered incapable of tort by law because it is assumed that children under the age of seven do not recognize the scope and consequences of their actions.

Then the insurance does not step in and the victim remains with his damage not getting reimbursement.

The statutory age limit is even higher for damage in flowing road traffic: children are not liable until they are ten years old.

Something else applies to stationary traffic (parked vehicles etc.). For example, if a child scratches a parked car, they will also have to pay compensation if they are seven, eight, or nine years old.

In case you do not want victim parties to be left empty-handed in the case of damage caused by your young children, make sure that you choose to cover that claims in your insurance.

In individual cases, parents can be held accountable for damage caused by their child – namely, if they have violated their duty to supervise. Then they are not liable for their children, but for their own misconduct, for not having adequately supervised their offspring. Then your personal liability insurance also pays, if this breach of supervision obligation is insured in the contract.

Conclusion: Check the conditions carefully and have them individually secured for your needs. Standard is usually inexpensive, but it can be costly and annoying in the event of an claim, especially if the person who or which property is damaged is known, or locations and institutions where you or your children are frequently present (Kindergarten, Clubs, Friends etc.).

Does my liability pay for any damage I cause when I help a friend moving apartments?

No generally it doesn´t, which may sound amazing. Because the private liability insurance usually pays when you’ve damaged someone else’s property. It is different in case of helping to move.

Because voluntary moving helpers such as family members and friends do not have to reimburse for the damage if they join the move out of sheer complacency and accidentally break something.

Courtesy means helping someone without getting money or other kind of reimbursements. In the event of a complacency, all those involved assume that the helper’s liability has been tacitly excluded. That means: Neither the clumsy removal assistant must pay nor his private liability insurance.

Exception: The voluntary removal assistant must compensate for the damage if he acts with gross negligence, i.e. intentionally violates his duty of care. Examples: A woman accidentally drops the moving friend’s computer; she is not liable.

However, if she is drunk and drops his computer when moving, she is liable because she has violated her duty of care and thus also her private liability insurance, provided that gross negligence is also covered.

Note: Alcohol is also in the insurance sector not a solution to problems and get claims paid, in most cases, also in insurance claim situations, it will lead to further problems.

However, this damage of courtesy and also damage within relatives and co-insured family members can be insured if this is important for you when choosing insurance cover.

In case the moval assistant damages an uninvolved third party, her private liability insurance will cover this claim.

Example: When carelessly carrying the piano, she scratches the parked car of a new neighbor. This is covered. Even if you accidentally put the wing on the new neighbor’s foot, and its broken.

The camera borrowed by a friend falls off, not bad, because my private liability insurance pays?

Not necessarily. Whether the insurance pays when a borrowed thing breaks depends on the tariff. As a rule, damage to loans is treated like damage to one’s own property. And if someone breaks their own thing, they cannot turn to their private liability insurance.

In such cases, the you must pay the damage out of their own pocket.

But there are tariffs for private liability insurance that offer protection for borrowed items. Sometimes the amount is limited, or the insurance includes a deductible. This means that you must pay part of the damage yourself if you damage a loaned item.

If you are interested, check your current insurance cover. If you cannot find a clause or are unsure, have your insurer confirm this in written. Confirmations, by Agents, or verbally from insurance staff are not legally enforceable. This is different in case you are been consulted by an German insurance broker (Versicherungsmakler), since they are legally reliable for their consultation.

If you are also seeking consulting and information for health insurance options as a foreigner in Germany, you can go to our special website for health insurance products for Expats Sicher Sicher to Stay.