Liability insurance, yes or no?

Liability insurance is insurance that protects you against damage caused or inflicted by you or one of your family members. A family insurance is also a liability insurance. Suppose you have injured someone. You will be held liable and the costs will mount up. If you don’t have liability insurance in such a case, you have a big problem. That is why liability insurance is very important insurance.


Both companies and private individuals take out liability insurance to protect themselves against damage claims. Family insurance is liability insurance for the entire family, including pets. Liability insurance alleviates the financial suffering in the event of a claim for damages. Emotional suffering cannot be alleviated with money, but financial damage can of course be alleviated. To prevent you from getting deeply into debt if you are held liable for a certain form of damage, it is wise to take out liability insurance . The great thing about insurance is that you often pay a relatively low amount for a high compensation, in case things go wrong.

No (or any) third party insurance

Liability insurance is also called third party liability insurance. It is insurance that protects you against liability for damage. If you are held liable for damage, privately or through your company, you are insured against this and the liability insurance will reimburse you for all claims relating to personal injury and property damage in accordance with the policy conditions. If you do not have liability insurance, you will not be reimbursed and you may therefore have to pay yourself. That is why it is really wise to take out third party liability insurance. There are many insurance companies where you can take out insurance. You can find good and affordable liability insurance by comparing different insurers. Also look carefully at what is and is not insured and what conditions are imposed.

Damage caused and be held liable

You can harm someone else, and of course that may not have been intentional. It may involve injury, but in private life it may also involve dropping a camera belonging to an acquaintance or accidentally knocking over an expensive device such as the Wii, a television or laptop, and the like. If you have caused damage to someone else in this way, you can recover that damage from your insurance. You can insure yourself against very large claims. Liability insurance in itself is not expensive. The premium is usually low, but the benefits you get from it if necessary are great. For companies, it also goes without saying that you take out liability insurance.

Intentionally inflicted damage and pure financial damage

  • If damage is caused intentionally, it is normally not insured.
  • Pure financial damage, or damage that consists exclusively of financial damage, is also generally not covered. The risk is therefore high for companies where pure financial damage can be insured, such as accountants, brokers, insurance agents and lawyers.
  • Damage to rented items is also not covered.

Take out liability insurance

It is very important to take out liability insurance. It is of course extra important for companies, but private individuals are also not interested in claims for damages. Independent professionals also take out such insurance.

  • Private individuals can take out private liability insurance (AVP) against damage caused by all individual family members and the insured person himself.
  • A company or independent professional takes out AVB insurance against the risk of liability.


The premium depends on the type of company. For a company where the damage can be extensive, such as a hospital or a construction company, the premium is higher than for a company where the damage is not likely to be extensive.

Is it mandatory to take out liability insurance?

In most countries in Europe it is not mandatory to take out liability insurance. In our country it is mandatory to take out liability insurance for:

  • Hunters.
  • Nuclear power plant operators.
  • Motor vehicle owners.

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