If necessary, the perpetrator is liable with his entire property, in unlimited amount. Especially when people are harmed, horrific claims for damages can arise that ruin the perpetrator financially – if he can pay them at all.
That is why there is private liability insurance. It covers damage that the insured person has caused accidentally, negligently or grossly negligently to someone else in the private sphere. It also checks the amount of damage and fends off unjustified or excessive claims.
For example: You walk across the street with your cell phone to your ear without paying attention to the traffic. A driver evades and hits a lamp, injuring him. The private liability insurance pays the property damage as well as the treatment costs and, if applicable, the loss of earnings of the injured party.
What damage can be insured?
Private liability insurance primarily covers personal injury and property damage. In the case of personal injury, this can be lengthy treatment costs, compensation for pain and suffering, loss of earnings, right up to lifelong pension payments. In the case of property damage, it is, for example, repairs, compensation for total loss or loss of use.
Usually, various other risks are also insured in private liability insurance, such as pure property damage, damage to rental property and gradual damage, loss of keys and damage abroad. Failure coverage is also important: Your own liability insurance pays you if you have suffered damage yourself from someone else, but who is not covered by liability insurance and cannot pay the damage yourself.
Parents of young children should also include so-called “damage caused by children incapable of tort”: children under 7 or 10 years of age are not legally liable. If they cause damage (without violating the duty of supervision), no one is theoretically liable. With this additional clause, the private liability insurance pays anyway, and the injured party does not go away empty-handed.
Private liability insurance does not cover damage caused intentionally . Likewise, no damage caused by the insured himself. Also excluded are damage caused in high-risk areas, for example when driving a motor vehicle, at work, in various sports or as a dog owner – there is separate liability insurance for each.
Private liability insurance is not expensive. You can, however, save the insured person’s livelihood – and any co-insured family members – in the event of damage.