Personal liability insurance – Why you should never be without

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Private liability insurance is not legally compulsory. However, every citizen of Switzerland is recommended to take out such insurance. This brief overview shows why it is not compulsory, but nevertheless indispensable.

Why do I need personal liability insurance and what does it cover?

Civil liability

Every citizen who intentionally or unknowingly causes damage to another citizen is liable. He is therefore obliged to compensate this person.

You are also liable if, for example, a person or an animal for which you are responsible causes damage to a third person.

Damage can happen quickly: For example, the son breaks the neighbour’s window while playing football, the flower pot on the balcony falls down and smashes a car window or you break your mate’s glasses.

Everyone is liable here not only with their current total assets, but also with their present and future income.

That is why it is important to take out personal liability insurance for yourself and all family members.

The 4 most common claims covered by personal liability insurance

Personal liability insurance provides cover for

  1. Personal injury as well as damage to property
  2. Costs of loss prevention
  3. Defence against unjustified claims
  4. Damage to your own property resulting from personal injury or property damage   

Those who take out personal liability insurance should pay attention to what other cover is provided.

For example, cover for damage caused by driving another person’s vehicle can be added to the insurance cover. This is useful if you often drive your mate’s or girlfriend’s car.

As a rule, a deductible of CHF 200 is the standard. However, depending on the insurance, this can also be reduced, excluded or increased.

Some insurance companies even reward their customers by reducing or completely waiving the deductible if they have not caused any damage over a period of, for example, three years.

If you want to rent a flat, you are usually obliged to take out personal liability insurance if you do not already have it. This is the only way to protect the tenant against damage to the flat. Here, too, the deductible for tenant damage can be defined in advance.

Since the bicycle sticker was abolished in 2012, all cases of damage caused to third parties by cyclists are covered by private liability insurance. Insurance cover also exists for the use of electric bicycles, provided that the speed does not exceed 25km/h.

What is not covered by personal liability insurance?

Personal liability insurance does not cover:

  • Damage or injury caused to yourself or a person living in your household.
  • Damage or injuries that occur during professional activity (these are covered by accident insurance).
  • Material damage due to wear and tear
  • Damage or injury which is or was clearly foreseeable.
  • Losses incurred in connection with the transmission of a contagious disease
  • Damage or injury caused by an intentional act or crime.

Ajooda’s conclusion

In our opinion, personal liability insurance is only theoretically not compulsory because it is hard to imagine life without it. In this fast-moving age, something can happen quickly and your financial freedom is already in danger.

The beauty of personal liability insurance is that it offers a lot of protection for a comparatively low premium. This is one of the reasons why no one wants to do without this insurance cover.

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