Personal liability insurance: report a loss correctly and avoid trouble

Personal liability insurance is one of the most important policies: it covers damage you accidentally cause to others, and it fends off unjustified claims for you. What matters is reporting the loss and leaving the settlement to the insurer, instead of paying yourself prematurely.

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Your chances of getting your money back

Personal liability insurance checks justified claims and settles them, and it fends off unjustified claims at its own expense (passive legal protection). So you do not have to assess losses yourself.

Report the loss promptly, do not admit fault to the injured party and do not pay anything in advance, that could make the settlement harder. The assessment is done by the insurer.

What you should do now

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1. Document the loss
Record what happened (photos, sequence of events, witnesses) and what damage arose.
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2. Do not admit fault
Offer the injured party help, but do not admit liability and do not pay anything in advance, that is the insurer's matter.
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3. Report to the insurer
Report the loss promptly to your personal liability insurer and submit the documents.
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4. Leave the settlement to them
Let the insurer review and settle. It fends off unjustified claims for you.

How to spot the scam

The injured party insists on immediate cash payment 'without insurance'.
You are asked to sign an acknowledgment of fault.
The amount of the claimed loss seems excessive.

Frequently asked questions

What does personal liability insurance pay?

It settles justified damage claims that you accidentally caused to others, up to the agreed sum. Equally important: it fends off unjustified claims for you (passive legal protection).

Should I pay for the loss myself?

Generally not. Report the loss to the insurer and leave the review to it. Premature payments or an admission of fault can make the settlement harder. For trivial amounts, paying yourself can still make sense because of the no-claims discount, you decide that after consultation.

What may I say to the injured party?

Describe the sequence of events factually and say that your insurer will take care of it. But do not admit liability and do not sign an acknowledgment of fault, the assessment is done by the insurer.

Take action now

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.