Liability Insurance Through Parents: When Children Are Covered and When a Separate Policy Is Needed
18 May 2025
3
Minutes
Katrin Straub
CEO at nextsure
Are your children still covered by your liability insurance? Many parents are unsure how long family liability protection really applies to their offspring and when it's time to get their own policy. This article clarifies the most important questions and highlights what you need to pay attention to in order to avoid costly insurance gaps.
The topic in brief and concise terms
Children are generally co-insured under their parents' liability insurance until the end of their first vocational training or undergraduate studies, often up to the age of 25 at most.
Marriage of the child or entry into permanent professional life ends the co-insurance with the parents.
Children incapable of committing a tort (under seven years old, and under ten in traffic) are not liable unless the parents have breached their duty of supervision; however, good policies still cover such damages.
Immediate Overview: Key Facts on Parental Liability
Including children in the parents' liability insurance is a key component of family protection. Minor children are usually co-insured under their parents' family liability insurance. Specific conditions apply to adult children, often until the end of their initial vocational training or first degree. A child's marriage almost always terminates their coverage under the parents' policy. The exact age limits and conditions can vary depending on the insurance contract, with a cut-off often at 25 years. It is crucial to examine the specifics of your own contract carefully.
Basics clarified: Who is covered under the family liability insurance?
A family liability insurance typically covers the policyholder, the spouse or registered partner, as well as the children. Unmarried partners who live in the same household can often also be co-insured. Minor children are generally included as long as they live in the parents' household. For adult children, extended rules apply, which are often linked to their educational status. It is important to understand why you need liability insurance to grasp the scope of protection. The precise definitions of who qualifies as a co-insured child can vary slightly between providers, so it's worth checking the insurance terms. This provides clarity regarding the protection status of each family member.
Age limits and education: When does co-insurance end?
The co-insurance of adult children in the parents' liability insurance is usually linked to the first professional education. This means that during school, apprenticeship, or the first degree (Bachelor and often also a directly following Master), the coverage generally continues. Many insurers set an age limit, for example, 25 or 27 years, even if the education is ongoing. A second degree or a second course of training often leads to the termination of coverage through the parents. Entering permanent employment or a traineeship also ends the co-insurance. A child's marriage is likewise a definite reason for separation from the parents' liability insurance. It is advisable to contact the insurer early in case of uncertainties or special educational paths. This way, unpleasant surprises in the event of a claim can be avoided.
The following situations typically lead to the end of co-insurance:
Completion of the first professional training or first degree and commencement of employment.
Starting a second course of training or a second degree after having completed the first degree/training.
Marriage of the child.
Reaching an age limit stipulated in the contract (e.g., 25 years), even during training.
Commencement of a permanent, fully-paid job (not just side jobs).
These points demonstrate that the transition can be gradual and a careful review of one's own policy is essential.
Special cases in focus: What applies to waiting periods, stays abroad, and voluntary services?
Not every CV follows a straightforward path. What happens to insurance coverage during waiting periods between school and training or university? Many insurers cover such transitional periods, often up to a year. Even during a Voluntary Social Year (FSJ), Voluntary Ecological Year (FÖJ), or Federal Voluntary Service (BFD), protection under parental liability insurance often remains intact. Caution is advised for stays abroad, such as a student exchange or work & travel: It must be thoroughly checked whether and for how long the insurance coverage applies; some policies cover this for a maximum of one year. Our expert tip: Always clarify longer stays abroad or unconventional training paths directly with your insurer to avoid coverage gaps. Special conditions often apply for personal liability insurance for children abroad. The question of how long children are co-insured under liability insurance strongly depends on these details.
Expert knowledge: Legal foundations and incapacity to commit a tort
Liability for damages is regulated in the Bürgerliches Gesetzbuch (BGB), particularly in § 823 BGB (obligation to compensate for damages). However, there are special provisions for children regarding their capacity for tort. Children under the age of seven are generally incapable of committing torts (§ 828 Para. 1 BGB). This means they cannot be held liable for damages they cause. In road traffic, this limit even extends until the completion of their tenth year, provided the damage was not caused intentionally (§ 828 Para. 2 BGB). Parents are only liable for their children incapable of committing torts if they have breached their duty of supervision (§ 832 BGB). Many modern liability insurances offer a clause for damages caused by children incapable of committing torts to maintain harmony with the injured parties, even if there is no legal liability on the part of the parents. The coverage amounts for this can vary, for example, up to 50,000 euros or more. It is advisable to pay attention to this inclusion in the contract. The question, are children automatically insured for liability, is thus to be answered with Yes if a family policy exists, but the rules of liability are complex.
Optimising Policy Details: What to Consider for Family Liability Insurance?
When selecting or reviewing a family liability insurance, there are several important points to consider. A sufficiently high sum insured is essential; experts recommend at least ten million euros, or better still, 50 million euros in total for personal, property, and financial damages. [5,2] Ensure that damages caused by children incapable of committing a tort are included, ideally with coverage of at least 50,000 euros. [4,6] Other important inclusions might be: loss of keys (private and professional), loss of claim coverage (if damage is caused to you and the perpetrator cannot pay), and damages during acts of kindness (e.g., helping with a move). [5,4] Our expert tip: Check if rental property damage (e.g., in holiday homes) and internet damage (e.g., through data transmission) are also covered. [2,2] A comparison of different policies may be worthwhile to find the best protection for your family. The conditions for the co-insurance of children, especially adult children in education, should be clearly and understandably formulated.
Important benefit extensions may include:
Loss coverage: Pays if you suffer damage from a third party, but they are unable to pay and do not have liability insurance. [4]
Damages by children incapable of committing a tort: Covers costs even without legal liability of the parents. [4]
Loss of other people's private and professional keys: Can cover expensive lock system replacements. [2]
Damage to borrowed and rented items: Important if you frequently use things from friends or relatives. [6]
Internet damages: Coverage for risks in the digital space. [2]
Worldwide overseas cover: Should apply for holidays and temporary stays. [2]
This list shows that the devil is often in the details, and a thorough review of the contractual terms is necessary.
Ensuring Independence: When is the first personal liability due?
As soon as they enter professional life after completing their initial training or undergraduate studies, young adults need their own private liability insurance. [3,4] Marriage also inevitably necessitates a personal policy, as coverage under the parents' insurance ends. If the adult child moves out of the parental home and has completed their education, an individual insurance is also required. [5] Our expert tip: Even during a traineeship or when starting a second course of education, having your own liability insurance is often necessary, as this is no longer considered initial training and often comes with its own income. [1,4] The costs for personal liability insurance for young adults are manageable, often starting at around 35 to 60 euros per year. [4] It's a small price for essential protection against potentially ruinous compensation claims. The question of when having your own liability insurance makes sense can therefore be clearly answered. Transitioning to one's own insurance cover is an important step.
Check your individual situation: We are here to help you
More useful links
Wikipedia provides a comprehensive overview of liability insurance.
The Federal Ministry of Justice provides the exact wording of § 832 of the Civil Code (BGB) regarding the liability of supervisors.
Finanztip offers a detailed article on liability insurance for children.
The Handelsblatt examines in an article when children are covered under family liability insurance and when they are not.
FAQ
Up to what age are children covered under the family's liability insurance?
Minor children are always co-insured. Adult children are generally insured during their initial school and vocational training (e.g., apprenticeship, bachelor's and subsequent master's degree programs). Many insurers have an age limit, often 25 years.
What counts as the first vocational training for liability insurance?
A first professional qualification generally includes an apprenticeship, a bachelor's degree, and often a directly subsequent master's degree. A second degree or apprenticeship after already completing an educational program is usually not considered as such.
Do I need my own liability insurance when I move out of my parents' house?
Moving out alone does not necessarily terminate the co-insurance as long as you are still in your initial training and the other conditions (age, marital status) are met. However, upon completion of your training and with your own employment, a separate policy is required. [2,5]
What if my child causes damage during an FSJ or BFD?
In many cases, parental liability insurance coverage continues during a Voluntary Social Year (FSJ), Voluntary Ecological Year (FÖJ), or Federal Voluntary Service (BFD). It is advisable to clarify this with the insurer in individual cases.
Are parents always liable for damages caused by their children?
No. Children under the age of seven are not liable for offences (under ten in road traffic). Parents are only liable if they have breached their duty of supervision. However, many liability insurance policies voluntarily include damage caused by children who are not liable for offences.
What is the cost of a personal liability insurance for young adults?
A good personal liability insurance for young adults is often available for an annual premium of between 35 and 70 euros. The exact costs depend on the chosen tariff and scope of services. [4]
