All you need to know!

What insurance do I really need? Many people ask this question – especially when considering how to save on regular expenses or costs. However, if you don’t take out private liability insurance here, you’re saving in the wrong place. For the relatively low premiums of a few euros per month, this insurance covers and protects extensive risks.

This is what private liability insurance is

If damage occurs in your environment, which you caused by mistake, negligence or on purpose, you are legally responsible for the damages to the organizations and people who are affected. Except for intent, private liability insurance protects against such claims. It first examines the legality of the allegations. If there is any doubt, the insurance company will take over the defense at its own expense, for example through court proceedings. Therefore, private liability insurance always includes legal protection. Otherwise, in the event of justified claims, the insurance company will undertake the full settlement of personal injury or property damage within the agreed amount insured.

All this is insured

No one should enrich himself from harm. For this reason, three principles apply to private liability for damages as well as to insurance company benefits:

  • If the damage to the property can be fixed, all repair costs will be covered – plus an additional cost for depreciation, if applicable.
  • In the event of a total loss, the injured receive compensation in the replacement value or present value.
  • In the case of personal injury, a long series of costs can arise: immediate treatment costs, subsequent rehabilitation costs, as well as compensation for pain and suffering or even retirement payments in the event of permanent impairment.

Here you can already get a good idea of ​​how much the damage will cost in individual cases. Therefore, in road traffic, there is a real responsibility. Every vehicle should have liability insurance. Proof of insurance is already a prerequisite for admission. Such an obligation does not apply to the private sector – only as an obligation to obtain professional liability insurance for self-employed or entrepreneurs. In the worst case, the damage can be as high as in road traffic, both in everyday life and at work.

Private liability insurance protects you here:

  • If the duty to care for minor children – for themselves and for other children – is violated
  • After violating the duty to ensure safety on the road, such as not defrosting the sidewalk
  • When pedestrians or cyclists are injured in an accident
  • In special sports activities
  • In the case of owner-occupied properties such as holiday apartments or condominiums
  • Additional protection against the community of owners in the event of damage to community property
  • If you lose a key to a rented apartment and also if you lose your employer’s keys
  • As a customer for construction or conversion work worth more than 20,000 euros
  • In case of water damage caused by common household items and material quantities
  • After the damage caused by the exchange, provision or transmission of electronic data
  • In case of damage during volunteer work

Extensive insurance coverage. The amounts of damage that are regulated in individual cases depend on the insurance policy and the agreed amounts insured. The amount of that can be critical if you do damage when it comes to being financially present.

What amount of private liability insurance should be taken?

Many insurance companies offer fixed tariff packages here: the base is Basic Protection, Extended Protection and Premium Variable.

  • Basic protection usually includes the average sum insured between one and five million euros.
  • Extended protection often covers damages of around ten million euros.
  • In the area of ​​premiums, insurance amounts from 30 to 50 million euros are common.

At first glance, this seems like a lot. After a major accident, such high levels of damage are by no means uncommon. Premiums are often only slightly higher in the premium tariff, even these extreme events are well insured. Otherwise, the following always applies: everything that is not covered by the insurance tariff must be paid by the person who caused it. In the case of the amount of damage, for example, two million euros, the special liability insurance of an insured amount of 1.5 million euros also does not help, because half a million still has to be paid in particular. It is worth paying a slightly higher monthly premium for a much higher security deposit.

Conclusion: don’t save in the wrong place

People in Germany have relatively good insurance. However, for many, there are also significant uninsured risks due to not obtaining private liability insurance. However, no one should take risks. Even for small monthly insurance premiums, there is extensive protection against potential financial ruin caused by a claim. Private liability insurance covers risks ranging from small amounts to millions. A small moment of inattention can be enough to cause an accident with personal injury, which can very quickly lead to huge costs due to doctor and hospital costs, potentially prolonged treatment and loss of work. Without adequate insurance protection, it means a threat to your financial existence and amounts that may not be compensated.

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