Claims coverage for pet owners liability: Comprehensive protection in case of insolvent damage causers
13 May 2025
11
Minutes
Katrin Straub
CEO at nextsure
Is your pet injured by another animal, but the owner cannot cover the costs? The claims default coverage in pet owner liability insurance steps in and protects you from six-figure expenses. Find out how this important component works and why it is indispensable for every pet owner.
The topic in brief and concise terms
The pet owner's liability insurance with loss cover steps in when an attacker who has injured your animal cannot pay.
Prerequisites usually include a known perpetrator, a legally binding title, and an unsuccessful enforcement attempt.
Pay attention to high cover sums, low or no minimum damage amount, and the inclusion of damage caused by individuals without legal capacity.
Understanding Loss of Earnings Coverage: Your Financial Lifeline
The non-payment cover is an additional component of your dog liability insurance or horse liability insurance. It comes into effect when you or your animal suffer damage caused by someone else's animal. If the owner of the damaging animal cannot pay, your insurance steps in. This prevents you from financial ruin, as veterinary costs can quickly reach four or five-digit amounts. Many pet owners underestimate this risk, which affects over 4.7 million people who are uninsured or underinsured in Germany. The non-payment cover closes a critical gap in insurance protection. This clearly highlights the importance of this protection.
Practical examples: When claim default coverage in pet owner liability insurance is specifically helpful
Imagine your dog is bitten by another dog during a walk and requires surgery costing 3,000 euros. The owner of the other dog does not have liability insurance and is personally insolvent. Without default cover, you would be left with these costs. With this protection, your insurance covers the costs upon presentation of an enforceable title. Another example: your horse is injured in the paddock by another horse, resulting in treatment costs of 5,000 euros. Here too, default cover provides support if the other horse owner cannot pay. Such cases are not uncommon and can affect any pet owner. The coverage amounts often reach several million euros. These examples demonstrate how quickly a financial shortfall can occur without appropriate protection.
Important Conditions for Benefit
For your insurance to provide default cover, several conditions usually need to be met. These are crucial for your claim:
The offender must be known by name. Anonymous perpetrators are generally not covered.
There must be a legally binding title against the offender (e.g. a court judgment or a notarial acknowledgment of debt). This officially confirms your claim.
An attempt to enforce the judgment against the offender must have proven unsuccessful. Often, a bailiff's enforcement report is required here.
The damage must exceed any agreed minimum damage threshold. This could be, for example, 500 or 2,500 euros.
No other insurance (e.g. the offender's pet health insurance) covers the damage.
The claim must be reported to your own insurer immediately and truthfully.
The specific conditions can vary depending on the insurer and policy. Therefore, it is essential to review the terms and conditions of your liability and legal insurance.
Scope of coverage and exclusions: What is typically covered?
The claims coverage typically covers personal injuries, property damages, and sometimes financial losses caused to you by third parties. In the claims coverage for pet owner liability, these are typically veterinary costs for your injured animal. Compensation for pain and suffering for you as the owner may also be included if you are injured while attempting to separate the animals, for example. The coverage amount often corresponds to the general insurance sum of your pet owner liability, which can be several million euros. Some tariffs even cover damages caused by children incapable of committing torts or their animals. Look for tariffs without or with low minimum damage thresholds for optimal protection. However, there are also exclusions that you should be aware of.
Typical exclusions from claims coverage
Not every case of damage is covered by claims coverage. Common exclusions are:
Damages caused by the perpetrator within the scope of a professional or commercial activity.
Intentionally caused damages by the perpetrator (although some premium tariffs include this).
Damages related to war, civil unrest, or natural disasters like earthquakes.
Pure financial losses, unless explicitly insured.
Legal prosecution costs, unless active legal protection is part of the claims coverage.
Damages for which another insurance (e.g., your own home insurance for property damages in the apartment) would be primarily liable.
These exclusions illustrate how important it is to carefully review the contract details before taking out a special insurance.
Expert Depth: Legal Foundations and Recent Judgments
The legal basis for claims for damages is primarily found in the German Civil Code (BGB), specifically § 833 BGB regarding animal owner liability. This paragraph states that the animal owner is liable for any damage caused by their animal - irrespective of fault. The coverage for claims defaults is a contractual agreement with your insurer and not a statutory service. Courts regularly confirm the necessity of a legally binding title and a failed enforcement attempt as prerequisites for claiming under the coverage for claims defaults. A judgement by the Coburg Regional Court (Az. 13 O 150/11) clarified the liability of a dog owner, even if there was no direct bite attack, but a person was startled by the barking dog and fell, resulting in costs of 6,500 Euros. Our expert tip: Always carefully document the course of the damage and witness statements. This greatly facilitates the later assertion of your claims. Thorough knowledge of the legal situation is of great importance for animal owners, as explained in our article Must a dog be insured?.
Costs and choice of tariff: Finding the right protection
The cost of liability insurance for pet owners with coverage for claim defaults varies depending on the provider, type of animal (dog or horse), breed, and desired coverage amount. Often, this coverage is included in comfort or premium plans, or it can be chosen as an additional component for just a few euros per month. It is always worth comparing. Pay attention not only to the price but especially to what is included in the coverage. A high coverage amount of at least ten million euros is recommended. Also check if there is a minimum claim amount and what it is – tariffs without a minimum claim amount offer the best protection. A good coverage for claim defaults can often be integrated for an extra cost of less than five euros per month. We also answer the question How much does liability insurance cost? in our blog. This ensures that your protection is optimally tailored to your needs.
Distinction from personal liability and other insurances
Demand failure coverage is also available in personal liability insurance. However, for damage caused by animals, the specific animal owner liability demand failure coverage is responsible. Your private liability insurance generally does not cover damage caused by dogs or horses; for this, animal owner liability insurance is essential. A pet health insurance, on the other hand, covers veterinary costs for your own pet, regardless of whether a third party is at fault. It can be a sensible addition but does not replace demand failure coverage, as this can also cover other damages (e.g., compensation for pain and suffering for you) and applies when someone else should pay but cannot. The interaction of various insurances is important for comprehensive protection. More information about why you need liability insurance can be found on our blog. Understanding the differences helps you choose the right policies for your situation.
nextsure Expertise: Your partner for tailored protection
As a digital insurance portal, it is our mission at nextsure to offer you tailored and easy-to-understand insurance solutions. The default coverage for pet owner's liability is a prime example of how essential specialised protection can be. We help you find the tariff that suits you and your pet best, taking into account all relevant details such as cover amounts, minimum damage thresholds, and any exclusions. Our experts know the pitfalls and understand what is crucial to ensure that you are not left out in the cold when it matters most. Benefit from our expertise and fully digitalised advice. We analyse your individual situation and show you how to secure optimal coverage for you and your four-legged friend, even if the dog liability insurance does not pay out. Contact us for an individual risk analysis.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete optimisation suggestions.
More useful links
Wikipedia provides comprehensive information about pet owner liability insurance in Germany.
On Gesetze im Internet, you can find the exact wording of paragraph 833 of the German Civil Code (BGB) regarding liability for damages caused by animals.
FAQ
Why is claim failure coverage so important for pet owners?
It protects you from major financial burdens if your animal is harmed by another and the responsible owner cannot cover the damage. The number of people who are uninsured or insufficiently insured is considerable.
What requirements must be met for the uninsured loss coverage to provide compensation?
Typically, the liable party must be known, a legally binding judgment against them must exist, and an enforcement attempt must have been unsuccessful. There is often a minimum damage threshold as well.
Does the cover for uncollectible claim compensation also cover damages that occur abroad?
It depends on the respective tariff. Good tariffs also offer protection against damages abroad. Check this in your insurance policy conditions.
Is there a minimum damage amount for the claims default coverage?
Yes, many insurance plans specify a minimum claim amount, for example, €2,500. However, there are also plans with no or lower minimum claim amounts.
What is the difference compared to the standard liability insurance for pet owners?
The standard pet owner liability insurance covers you when your pet causes damage to a third party. The claim shortfall coverage pays when you or your pet suffer damage caused by third parties (or their animals) and these third parties cannot pay.
Are damages caused by deliberate actions of the injurer also covered?
Intentional damage is often excluded from basic policies. However, some premium policies can provide coverage even in these cases.
