Personal liability in Germany: the gap with small children

Q: What about damage caused by my dog?

That is not included in personal liability cover. Dogs and horses need their own animal-owner liability policy — and it is not optional: under § 833 of the German Civil Code an animal keeper is liable even without any fault of their own.

In short

The answer in 30 seconds

Personal liability is the one insurance you cannot go without: it pays when you — or your children — cause damage to others. And because children under 7 are legally not liable at all, you need a family tariff with the right clause; otherwise the neighbour is left with the damage and you, potentially, with the dispute.

Covers damages for which you are liable without limit, with your assets
Children under 7 are not liable — the “non-delictual children” clause closes the gap
One family tariff covers everyone — the coverage sum is what matters
A few euros a month for existential protection

In short

Who needs personal liability insurance in Germany?

Every household — and families most urgently. Anyone who causes harm to another person is liable under § 823 of the German Civil Code without limit, with all present and future assets. There is no statutory ceiling. That unlimited liability is exactly what personal liability insurance replaces, up to the agreed sum insured.

The expensive case is not the scratched paintwork but injury to a person: whoever causes lasting harm owes medical costs, loss of earnings and a lifelong annuity. That is why consumer advocates recommend a sum insured of at least €10 million — moving from 10 to 50 million usually costs only a few euros more per year.

A family tariff typically runs at €50 to €100 a year and includes your partner and children for as long as the children are unmarried and in education. With small children, however, one single clause decides whether the policy pays in the most likely case at all — more on that below.

Try it yourself

Who pays when your child breaks something?

Set your child’s age and watch the legal position change. The surprising part is at the youngest end.

How old is your child? 5 years

Something damaged while playing

The ball hits the window, a stone scratches the paint, a phone is dropped.

Your child is not liable — and you as parents only if you breached your duty of supervision. Where there is no liability, no ordinary liability policy pays. The injured party is left with nothing.

Road accident involving a car

The child runs into the road or cycles into a moving vehicle.

Your child is not liable — and you as parents only if you breached your duty of supervision. Where there is no liability, no ordinary liability policy pays. The injured party is left with nothing.

Visiting friends

Someone else’s sofa, television or borrowed toy.

Your child is not liable — and you as parents only if you breached your duty of supervision. Where there is no liability, no ordinary liability policy pays. The injured party is left with nothing.

At nursery or school

Damage to property on the premises or on the way there.

Your child is not liable — and you as parents only if you breached your duty of supervision. Where there is no liability, no ordinary liability policy pays. The injured party is left with nothing.

The gap almost nobody knows about

Where nobody is liable, no liability policy pays — it replaces exactly the liability that does not exist here. The neighbour is left with the scratched car, and you choose between paying out of pocket and living with the dispute. In a building where you see each other every day, that is not a theoretical question.

This is what the clause for “damage caused by children not liable in tort” is for: the insurer pays voluntarily although it would not have to. For families with small children it is the single most important component — and many cheap tariffs either leave it out or cap it at a few thousand euros.

Legal basis: § 828 German Civil Code (liability of minors), § 832 (liability of the supervising party), § 823 (duty to compensate).

Do you know whether your policy contains that clause?

Most families do not — and find out at the worst possible moment. In the clarity call we look at your existing contracts together. Free, in English, even if you change nothing in the end.

Book your free clarity call

What matters

How do you spot a good liability policy?

The price gap between two family tariffs is often a few euros a year. The difference in cover runs into millions.

The sum insured

At least €10 million — the step up to €50 million usually costs only a few euros more per year.

The sum insured is the ceiling on what the insurer pays. Above it you are liable again, and again without limit.

Why the figure has to be that large

For damage to property, small sums almost always suffice. The case that destroys livelihoods is injury to a person: whoever causes lasting harm owes treatment, loss of earnings, adaptation of a home, care costs and a lifelong annuity. Such cases reach eight-figure sums — and the claim does not expire with the assets you happen to hold today.

What the upgrade costs

Because losses of that size are rare, raising the sum insured costs very little. There are few places in life where so little money buys so much. Saving here is saving in the wrong place.

Children not liable in tort

Without this clause the insurer pays nothing at all in the most likely family claim.

The chain is set out in the check above: before their seventh birthday a child is not liable, and parents are liable only if they breached their duty of supervision. No liability, no payout — that is not insurer arbitrariness but the logic of liability insurance.

What to look for in the contract

It is not enough that the clause appears at all. What matters is the limit: some tariffs cap it at €2,000 or €5,000, others pay up to the full sum insured. And some exclude damage to items you rented or borrowed yourself.

This is where a price comparison site stops being useful — the figure sits in the terms and conditions, not in the tariff name.

Default cover (Forderungsausfalldeckung)

It applies when someone harms you who cannot pay — the reverse case.

Everything so far concerns damage you cause. Default cover turns the direction around: someone harms you, is liable for it — but has no money and no liability insurance of their own.

Without this clause you hold a court judgment and not a cent. With it, your own insurer steps in and pays what the other party owes. Where a person is injured, that can be the difference between being protected and being ruined.

Lost keys and favour damage

Two everyday cases that turn out surprisingly expensive and are often missing from basic tariffs.

Lost keys

Lose the key to a shared building and you may be liable for replacing the entire locking system. In larger buildings that quickly reaches five figures. It also applies to work keys and to keys children are given at nursery or school.

Favour damage (Gefälligkeitsschäden)

You help friends move — and drop the washing machine. Because a favour creates no contractual duty in law, liability is often excluded or limited here. A good tariff pays anyway.

Two ways

Talk it through — or take it out yourself

Not everyone wants a call. If the points above have told you what you need, you can take out the policy yourself in a few minutes. Both routes run through us as your broker — the only difference is whether someone looks at it with you.

With advice

Worth it if you want existing policies reviewed, if several components are due at once, or if your situation has particularities — property, pets, self-employment, a child with an income of their own.

45 minutes, free, in English, with nothing to sign. We also say when you should change nothing.

Book a clarity call

Take it out yourself

Through our own application portal — with the tariff this page recommends: €50 million sum insured, no deductible, children covered up to 27, from around five euros a month.

Comparison and application run online, entirely in English, and claims support runs through us. Built for exactly this situation: cover you can understand without a translator.

Go to the application portal

Even if you apply directly, we remain your broker and your point of contact — for claims and for changes. Price and scope of cover are shown live in the portal; the figures here are a snapshot.

Common questions about personal liability insurance

Are my children covered by my personal liability policy?

In a family tariff, yes — for as long as they are unmarried and in education (school, university, apprenticeship). Once the first qualification ends, or on marriage, they need their own policy. Good tariffs have a rule for the gap between school and university; it is worth reading the terms before the situation arises.

What does personal liability cost for a family in Germany?

A family tariff typically runs at €50 to €100 a year. The differences in price are small, the differences in the terms are large — which is why the cheapest tariff here is almost never the right one. Through our portal the recommended tariff currently starts at around five euros a month.

Is €3 million sum insured enough?

For damage to property, generally yes. For the case that actually matters — serious injury to a person with a lifelong annuity — not reliably. Since raising it to 10 or 50 million usually costs only a few euros a year, there is little reason to economise here.

Can I take out the policy without speaking to anyone?

Yes. Our portal at insurance.etf4kids.com lets you compare and apply yourself, in English, in a few minutes. We stay your broker and handle claims support. If you would rather have someone look at your situation first, the clarity call is free.

Does the policy pay in cases of gross negligence?

Only if the contract says so. Without that clause the insurer may reduce the payout where you acted particularly carelessly — and what counts as “grossly negligent” is a matter of interpretation in a dispute. Its inclusion is standard in a good tariff.

What about damage caused by my dog?

That is not included in personal liability cover. Dogs and horses need their own animal-owner liability policy — and it is not optional: under § 833 of the German Civil Code an animal keeper is liable even without any fault of their own.

Context

This page is general information and does not replace advice tailored to your situation. What a specific tariff actually covers is set out in its terms and conditions — the differences between two offers carrying the same name are considerable. Figures and rates quoted are market values as of the stated date and are not a commitment.

ETF4Kids is a licensed insurance broker under § 34d of the German Trade Regulation Act, supervised by the Chamber of Commerce (IHK) Region Stuttgart. As a broker we are legally obliged to advise in our clients’ interest. We are neither legal nor tax advisers; where a question belongs there, we say so.

Let us look at your policies

In the clarity call we check what you already have — sum insured, the clause for small children, default cover. 45 minutes, free, in English, with nothing to sign.

Book your free clarity call