Every adult should have a personal liability insurance. This form of insurance covers costs that arise when one has inadvertently caused damage to persons or property.
Persons who have injured another person or an object belonging to another person are financially responsible for the damage caused. This is the case even when the damage was caused inadvertently. One can also be held liable for damage caused by children or pets. Costs may be very high. If, for example, one injures a person in a skiing accident the damage may add up to hundreds of thousands of Swiss Francs.
One must have personal liability insurance (Privathaftpflichtversicherung | Assurance responsabilité civile privée) to prevent financial difficulties in the event of damage to another person. This form of insurance is offered by most private insurance companies. Often, a private liability insurance contract can be settled for an entire household. This form of insurance is not compulsory, yet strongly recommended. Many property owners also require liability insurance from their tenants.
Personal liability insurance covers property damage and damage to persons which the insured party has caused another party to suffer. This includes the cost of repairs, medical treatment, loss of wages, or compensation for pain and suffering. Personal liability insurance also covers damages caused by certain pets. It does not cover damages to persons living in the same household or damages as a result of intent or gross negligence.
