Do I need liability insurance?
Personal liability insurance protects you from the financial impact of accidentally causing loss or injury to someone else. Comparis explains what exactly personal liability insurance covers, and what to watch out for when taking out a policy.
10.05.2023
iStock / cmannphoto
1. Do I really need liability insurance?
Imagine you are riding your bike and don't notice a pedestrian when you make a turn. You collide. The pedestrian falls and injures themselves. Without personal liability insurance, you will have to pay all of the related costs. Depending on the injury and follow-on costs, these could run to several hundred thousand francs.
Most Swiss people have personal liability insurance. There's a good reason for that. Accidents happen. In addition, the insurance premiums are relatively low compared to the sums insured. Many providers have a minimum coverage of 5 million francs for third-party claims.
Where is personal liability insurance valid?
As a general rule, the cover provided by personal liability insurance applies throughout the world. The providers list any restrictions in the general conditions of insurance.
2. Is personal liability insurance compulsory in Switzerland?
Liability insurance is not required by Swiss law, but it is one of the basic policies you should have.
Most cantons require dog owners to take out dog liability insurance.
3. When does personal liability insurance make sense?
All persons of legal age should consider liability insurance. Personal liability insurance is particularly recommended for the following:
Car
Third-party vehicle liability insurance is compulsory in Switzerland It is separate from personal liability cover and forms part of motor vehicle insurance. Voluntary personal liability, on the other hand, covers damage that you cause as a road user outside your own car – such as on your bike or as a pedestrian.
DOC ("driving other cars") insurance covers the cost of damage to someone else’s vehicle caused while you were at the wheel. This add-on is part of personal liability insurance.
Children
Your child puts their football through a window. An expensive vase gets knocked over during a game. Or your daughter paints a work of art on the wall. Children can be unpredictable. All parents are liable for damage caused by their children. Things can quickly become expensive.
Good to know: you can save premiums with family cover. As a rule, everyone living in the same household, such as married couples, children or those living in a shared flat, are insured under the same policy.
Pets
As a dog owner you have a great responsibility. In most cantons, if you own a dog you must take out liability insurance, for legal reasons. Not sure how to insure your dog? Here's all the important information: compulsory insurance for dog owners.
Rented apartments
Live in a rented apartment? Then liability insurance is a must. A lot can happen at home, like a stain on the parquet, a crack in the washbasin or a broken window pane. Certain property management companies even insist upon tenant liability insurance, even if it is not required by law.
Building a house
People easily get injured and property damaged on a building site. In some cases, liability insurance will cover this. Most cantons also require specific building liability insurance. To ensure you have the best insurance cover when building a house, we recommend our article on insurance for your building project.
4. What does personal liability insurance cover?
If you cause someone damage, injury or loss, you are liable. Liability insurance covers the costs incurred in such cases, providing the loss or damage was caused accidentally. In principle, liability insurance will meet the costs arising from the following claims:
| Damage and loss | Example |
|---|---|
| Personal injury | When skiing, you bump into another person and they break their arm. |
| Property damage | You accidentally spill red wine on your girlfriend's expensive sofa. |
| Financial loss | A shop suffers lost sales because you block the entrance with your bike. |
Note that liability insurance covers claims only at their current value. In addition, personal liability insurance protects policyholders against unjustified claims against them.
Possible additional cover
In the case of liability insurance, most providers offer additional cover for:
Gross negligence
Riding other people's horses
Hunting
5. Will my liability insurance cover all the damage?
A deductible or excess applies to liability insurance, as it does for almost all other types of insurance. This is the amount that you must pay as the insured person. The higher the deductible, the lower the premium.
The guaranteed amount is the maximum compensation that the insurance company will pay for each claim against a third party. The guaranteed amount is generally 5 million francs, but depending on the insurance model only 3 million, or up to 10 million francs are possible.
6. When does liability insurance not pay?
The exact exclusions are listed in the general conditions of insurance. The following claims, for example, are not covered:
Claims from a person living in the same household
Loss or damage caused deliberately
Property damage or personal injury caused by motor vehicles (compulsory vehicle liability insurance applies here)
Loss or damage arising in the context of a professional activity
Damage to own property (this is covered by household contents accidental damage insurance)
Gross negligence is not insured unless you take out separate cover for it.
7. What do I need to watch when taking out liability insurance?
You can save hundreds of francs a year if you compare offers. Always check whether the deal includes a 12-month cancellation option. This allows you to cancel the liability insurance after one year.
The period of notice is usually three months. If you do not comply with this deadline, the contract will automatically be extended.
Save on premiums
Compare premiums for personal liability insurance in Switzerland.
This article was first published on 08.08.2019
