Private liability insurance

30.03.2020

No one is safe from mishaps and accidents. For this reason, you should protect yourself. Especially in the event you accidentally cause damage or injury to another person. In line with the motto better safe than sorry, private liability insurance protects you against financial ruin.

Private liability insurance: why you need it

1. What is private liability insurance?

You sat on your colleague’s glasses, your child broke a neighbour’s vase or your dog nipped at a jogger and hurt him. Unfortunately, the risk of causing harm to other people over the course of life is not negligible. It is precisely such damage or injuries that you (or those for whom you are responsible) cause other people that private liability insurance covers.

While it is not compulsory in Switzerland, it should be concluded by everyone. This is because, in particular, the costs for doctors or hospital stays in the event of a personal injury can quickly add up. This would lead to financial ruin.

Moreover, dog owners are required in many cantons to conclude liability insurance. Many landlords also require proof of private liability insurance before they conclude a lease.

2. Who is covered by private liability insurance?

In general, the policyholder themselves, of course. However, there is also liability insurance in which all family members (including adult children and, in some cases, students or trainees who no longer live at home) are also insured. Couples living together can also conclude shared liability insurance.  

No extra insurance is required for pets such as dogs or cats, as they are also included in their owner’s insurance. 

3. How much does private liability insurance cost?

The good news is that everyone can afford private liability insurance. So everyone should be insured, because the insurance cover is extremely comprehensive and the premiums are low. You can have good basic insurance that covers most claims for just a few francs a month.

There is generally an excess of around CHF 200 per claim, but you can also do without the excess, in which case the premium will rise accordingly.

The amount of the guarantee sum is generally between CHF 3 and 5 million, but of course it depends to a large degree on the insurer and the policy.

4. What damages does private liability insurance cover?

As a general rule, private liability insurance is for injuries to other people and/or damages to their property (some damages are generally excluded). This includes:

  • Personal injuries
  • Property damage
  • Financial losses that are the result of personal injury or property damage (e.g. legal costs)
  • Damage prevention costs (e.g. extinguishing a fire)
  • Defending unjustified claims (the liability insurance reviews whether you are truly responsible for the damage caused and are therefore liable for it)

5. What damages are not covered by private liability insurance?

  • Damage and injuries that you cause to property and people in your own home
  • Damage caused intentionally
  • Damage caused as a result of a professional activity
  • Damage caused by normal wear and tear
  • Foreseeable damage that you could have prevented/damage as a result of negligent conduct (can be covered by supplemental gross negligence cover)
  • Damage in connection with contagious diseases
  • Damage in connection with a criminal offence

Damage when using third-party vehicles is not covered in the basic private liability insurance policy. However, you can conclude third-party driver insurance as a supplement to private liability insurance.

6. Tenant liability insurance

People live their lives at home and where there’s life, things are also bound to break every once in a while. A pot slipped out of your hand and damaged the sink? Or are the red wine stains from your last party not coming out of your carpet? Repair and renovation costs can be quite expensive, so incurring this risk is not advisable. For this reason, it is especially important for tenants to have private liability insurance. But take care – Damage that occurs gradually over the years (e.g. yellowed walls) or things that you purposely change on your own (e.g. a certain colour on the walls) are not insured by private liability.

7. Liability insurance for owners

Of course, you still need liability insurance even if you own a property. The basic version is standard private liability. Whether you need supplemental insurance depends on your living arrangements:

If you are part of a community of owners (e.g. as a condominium owner) or if you own a house where more than two parties other than you live, you must also conclude building liability insurance. This offers you insurance cover if, for example, a tile comes loose from your roof and falls on someone else’s car.

But if you live in your own house and no one else or a maximum of two other parties live there, private liability covers any damage.

8. Private liability in combination with household insurance

Private liability and household insurance are often offered in combination as a single product, as they are related. Note, however, that you should have both types of insurance because they differ in one very important point: while private liability insurance is for injuries or damage that you cause to other people or their property, household insurance covers damage to your personal items, such as furniture, clothes and electronic devices.

Combined insurance isn’t always less expensive. It’s worth making a comparison. You can also conclude both types of insurance with different insurers.

Learn more about the following types of insurance as well:

Building insurance
Construction insurance
Owner’s insurance
Household insurance
Legal protection insurance
Life insurance

The best protection for your home

Here you can order a customised insurance quote from our partner company Die Mobiliar - online, without obligation and of course free of charge.