Private liability insurance: everything you need to know

What is private liability insurance?

You accidentally sit on your friend's sunglasses, ride your bike in the dark and hit a pedestrian, or your dog takes a liking to a jogger’s calf: the risk of unintentionally causing harm to others is something we all face daily. This is exactly where private liability insurance comes in. It covers damages you (or those under your care) may cause to other people or their property.

In Switzerland, private liability insurance is not mandatory, but it is strongly recommended. And for good reason: especially in the case of personal injuries, the costs for hospital stays can be astronomically high and nearly impossible for an individual to bear.

In some cantons or municipalities, if you own a dog, you may even be required to take out private liability insurance. Many landlords also ask for proof of insurance before they will issue you a rental contract.

Who is covered by a private liability insurance?

Of course, you are covered if you take out a policy for yourself. However, some private liability insurance policies also include all family members – this can extend to adult children and, in some cases, students or apprentices who no longer live at home. Unmarried couples (concubinage) may also benefit from a shared private liability insurance policy, depending on the provider.

If pets such as dogs or cats are included in your policy, you won’t need to take out separate insurance for them.

How much does private liability insurance cost?

Good coverage doesn’t have to be expensive: Compared to the extensive protection it offers, private liability insurance comes with low premiums. You can get solid basic coverage for just a few francs per month.

Typically, you’ll pay a deductible of around CHF 200 per claim. If you prefer not to have a deductible, you can exclude it – but this will increase your premium accordingly. The coverage amount usually ranges between three and five million francs, depending on the specific policy you choose.

What does private liability insurance cover?

In general, private liability insurance covers damages you accidentally cause to other people or their property (your own damages are typically excluded). This includes:

• Personal injury (e.g., medical costs if you injure someone)

• Property damage (e.g., breaking someone’s belongings)

• Financial losses resulting from personal injury or property damage (e.g., legal costs)

• Damage prevention costs (e.g., firefighting expenses)

• Defence against unjustified claims (your insurer will check whether you’re actually liable before covering the damage)

Which damages are NOT covered by private liability insurance?

• Damages caused to people or belongings within your own household

• Intentional damages

• Damages related to your professional activities

• Damages due to normal wear and tear

• Foreseeable damages that could have been prevented, as well as those caused by gross negligence (the latter can be covered with an additional gross negligence protection)

• Damages related to contagious diseases

• Damages resulting from a criminal offense

• Additionally, if you cause damage while driving someone else’s vehicle, this is not included in the basic coverage of your private liability insurance. However, you can add "third-party driver insurance" as an optional extra.

Private liability insurance is also useful for renters

Life happens, and where people live, things can sometimes break. Did you drop a heavy pan while cooking and crack the stovetop? Are those red wine stains from your last flat party refusing to come out of the carpet? Repair and renovation costs can quickly add up, making private liability insurance especially important for tenants.

Important: Damages that occur over time (such as yellowed walls) or changes you made yourself (like painting a wall red) are not covered by liability insurance.

Liability insurance for homeowners

If you own a property, liability insurance is essential. A standard private liability insurance policy forms the foundation, but depending on your living situation, you may need additional coverage:

• If you are part of a condominium owners' association (e.g., shared ownership of an apartment building) or own a house with more than two additional residential units, you need building liability insurance. This covers damages caused by your property – for example, if a roof tile falls and damages a parked car.

• If you live in your own house and it has no more than two additional residential units, your private liability insurance generally covers potential damages.

Combined coverage: liability and household insurance

Liability and household insurance are often available as a combined package since they complement each other. While private liability insurance covers accidental damage you cause to others or their property, household insurance protects your personal belongings, such as furniture, sports equipment, or clothing, against damage.

Opting for a combined policy can be financially beneficial, as it is often cheaper than purchasing both insurances separately.