What protection does liability insurance offer?
Private liability insurance only covers damages that typically occur in everyday life. However, there are several other types of liability insurance: motor vehicle liability, pet owner liability, professional liability, house and landowner liability, water damage liability, building owner liability, sports boat liability, hunting liability, and other specialised liability insurances.
In principle, liability protection with all insurers applies to damages caused by the insured or co-insured persons negligently in the private sector. You are also protected as a supervisor, employer of domestic staff, builder of small construction projects, and as a tenant or owner of a flat.
In road traffic, only damages caused as a cyclist or pedestrian are covered. As a motorist, you also need motor vehicle liability insurance. A small exception: vehicles up to six km/h and work machines up to 20 km/h maximum speed are included in private liability insurance.
The insured risks even include most sports and the permitted private use of firearms, except for hunting. Also included are damages caused by the keeping of tame pets, small animals, or bees.
However, if you own "large" or "dangerous" animals (e.g. dogs and horses), you should take out special pet owner liability insurance. For riding someone else's horse, private liability insurance is sufficient, but claims from the horse owner are excluded.
Liability protection generally also applies abroad for at least one year, and even longer within the EU. The insurance covers abroad to the same extent as in Germany.
Special case: Liability for damages caused by children under seven years old
Children under seven are not legally responsible, in road traffic even until the end of their tenth year. The insurance only pays for damages if the parents have breached their duty of supervision - and this is a matter of discretion.
If it is established that the children were properly supervised, parents cannot be held legally liable. However, they may feel morally obliged to pay compensation if, for example, their son damages the neighbour's car while skating. It is therefore advisable for parents to secure the general coverage of damages caused by legally irresponsible children through an additional clause.
