Liability insurance pays for damages that you cause to other people. This sometimes even applies to damages caused by gross negligence.
A moment of inattention can quickly lead to serious damage to the body or property of other people in private life and on the road. Since such damage is associated with high costs, you should take out liability insurance. Depending on the insurance company, you can choose between different tariffs when taking out liability insurance.
Private liability insurance covers damage that you have caused to another person through your own fault. In the event of damage, the insurance company checks whether the claim is justified. This insurance acts as passive legal protection, as it defends against unjustified claims at its own expense.
If the claim is justified, it will pay for the damage. The prerequisite for this is that the damage was not caused intentionally. The liability insurance covers the following damages within the agreed coverage amounts:
You will have to cover any damage that exceeds the insured amount yourself. It is therefore particularly important in the case of personal injury to agree on a high insured amount as a precaution. This applies not only to private liability insurance, but also to motor vehicle liability insurance. In addition to damage caused by inattention or carelessness, liability insurance also covers damage caused by gross negligence.
Private liability insurance does not pay for damage caused intentionally. It also does not pay for damage you suffered at work. This type of damage is covered by your professional liability insurance or your employer’s liability insurance.
Many private liability insurance policies also do not pay for damage caused by the policyholder to relatives living in the same household through negligence. Private liability insurance often does not cover damage caused to relatives who are also insured under the policy. However, there are insurance policies that cover these cases accordingly. So ask specifically.
If you cause damage to your property through your own fault, it will not be covered by your personal liability insurance. Your home contents insurance will also not cover damage caused by your own fault.
Most home contents insurance also excludes damage to personal property caused by negligence. It is therefore important to take precautions against break-ins by using suitable locks and other measures. You can read more about home contents insurance here.
