Personal liability insurance for children: Ensuring comprehensive protection for your family
05.05.25
8
Minutes
Katrin Straub
Managing Director at nextsure
A moment of inattention, and it happens: your child causes damage. Find out how private liability insurance for children provides financial security and what you need to know about incapacity for liability and your duty of supervision.
The topic in brief and concise terms
Children under seven years of age (under ten in road traffic) are incapable of committing a tort and are not liable for damages unless their parents have breached their duty of supervision.
A family personal liability insurance policy should explicitly include damage caused by children who are not legally liable, to avoid gaps in cover.
Children are usually covered by their parents’ liability insurance until the end of their first vocational training or first university degree, even if they no longer live at home.
Understanding children’s lack of tort liability and acting correctly
Children under the age of seven are considered incapable of tortious liability under Section 828(1) of the German Civil Code (BGB). This means they cannot be held legally responsible for damage they cause. In moving road traffic, this age limit is even ten years. Many parents are surprised that they are not automatically liable for damage caused by their children who are incapable of tortious liability. An exception applies if parents have breached their duty of supervision. A good private liability insurance policy can still provide cover in some circumstances, especially if damage caused by children who are incapable of tortious liability is explicitly included. This often helps keep the peace, for example if a friend's child is involved. The exact conditions vary, so it is essential to check the policy.
Parents’ duty of supervision: understanding the legal basis and practical implications
Parents’ duty of supervision is enshrined in Section 1626 of the German Civil Code (BGB) and obliges parents to care for, educate and supervise their children. A breach of this duty can mean that parents are liable for damage caused by their children, even if the children are not liable in tort. The level of supervision required depends on the child’s age, character and stage of development, as well as on the particular situation. A four-year-old child requires closer monitoring than a ten-year-old child. In the event of damage, courts examine whether the duty of supervision was sufficiently fulfilled in the specific case. A liability insurance policy is important, as it also checks whether the claims for compensation are justified. Case law shows that constant supervision is not always necessary; children should also learn to act independently.
Practical damage examples: When children's private liability insurance applies
Imagine your eight-year-old son is playing football in the garden and the ball ends up hitting the neighbour’s conservatory window – causing damage worth several hundred euros. Or your daughter accidentally scratches a parked car while playing with her balance bike, leading to repair costs of over one thousand euros. In such cases, comprehensive personal liability insurance is worth its weight in gold. It generally covers the cost of property damage caused by your children to third parties, provided the children are legally liable or there has been a breach of supervision duty. Particularly important is cover for damage caused by children who are not legally liable, so that you are protected in these situations too. Another example: your child knocks over an expensive vase at a friend’s house – the insurance may also step in here. The cost of liability insurance is low compared with the potential amounts of damage.
Here are some typical claims where personal liability insurance for children becomes relevant:
The child damages someone else’s property while playing (e.g. toys, smartphone).
While cycling, the child causes an accident resulting in property damage or personal injury.
The child spills juice over a friend’s laptop.
A thrown ball destroys a window pane.
The child loses the key to the rented flat (provided key loss is included in the cover).
These examples show how quickly and unexpectedly damage can occur.
Special case: lost keys — what to bear in mind with children
The loss of a key, especially to a rented flat with a master key system, can quickly result in costs of several thousand euros. If your child loses someone else’s private key, personal liability insurance can cover the costs of replacing locks or the entire locking system, provided this component is included in the policy. Make sure that the loss of keys belonging to others is explicitly covered in your policy. The sums insured for key loss can vary; often they are up to fifty thousand euros. It is advisable to check the exact terms and any excess. Not every personal liability insurance for children automatically covers every key loss. Covering professional keys can also be sensible if older children, for example, have a key for a part-time job.
Age limits and transitional phases: Optimising insurance cover for older children, apprentices and students
Children are generally covered under their parents’ family liability insurance as well, as long as they are attending school and are in their first vocational training or course of study (apprenticeship or degree programme). This co-insurance often applies even if the child already has their own household for the purpose of training or study. The age limits for co-insurance can vary depending on the insurer, but are often 25 or 27 years old. It is important that this is the first qualification; a second degree or training after already having worked in a profession usually requires separate liability insurance. Even after a bachelor’s degree, a master’s programme that follows directly on still counts as initial training. Clarify the exact conditions for co-insurance with your insurer. As soon as your child gets married or takes up regular employment and earns their own income, co-insurance under the parents’ policy usually ends, and their own liability insurance becomes necessary.
Our expert tip: Check the terms and conditions of your family liability insurance carefully with regard to age limits and training clauses. This will ensure that your child is also optimally protected during transitional phases, such as between finishing school and starting training or university. Some tariffs offer special provisions for this.
Expert knowledge: Understanding § 828 BGB and recent rulings on tort capacity and duty of supervision
Section 828 of the BGB is the central provision governing minors’ incapacity for tort liability. Subsection 1 states that anyone who has not reached the age of seven is not responsible for damage they cause to another person. Subsection 2 governs the special position in road traffic up to the age of ten. Subsection 3 makes clear that minors over seven or ten are not liable if, when committing the harmful act, they lack the understanding required to recognise their responsibility. Courts interpret these provisions on a case-by-case basis and take the child’s maturity and stage of development into account. Recent judgments repeatedly confirm that the extent of the duty of supervision depends very much on the circumstances. For example, a three-year-old child who is believed to be asleep does not need to be supervised continuously if the parents are within earshot (cf. Finanztip example). Liability insurance can also be relevant in the event of damage within the family if certain conditions are met. It is important to know the details.
Important aspects from case law on the duty of supervision are:
The child’s age: younger children require more intensive supervision.
The child’s character: a particularly lively or careless child requires more attention.
The local conditions: a hazardous environment (e.g. a construction site, busy road) increases the requirements for supervision.
The nature of the child’s activity: closer monitoring is needed for potentially dangerous games.
The recognisability of dangers to the child and third parties.
These factors are taken into account by courts when assessing a possible breach of the duty of supervision.
When choosing private liability insurance for families with children, you should pay attention to several important points. A sufficiently high sum insured is essential – at least ten million euros is recommended, and fifty million euros is better for personal injury, property damage and financial loss. The clause covering damage caused by children incapable of tortious liability is indispensable. This protects you from financial burdens and disputes if your child under seven causes damage and you have not breached your duty of supervision. Also check whether children are automatically included in the cover or whether they must be named individually. Other useful inclusions can be: loss of keys (private and, if applicable, work-related), damage to rented property (rental damage) and cover for claims that cannot be recovered from the liable party. Compare the benefits and special offers for families. Our expert tip: look for tariffs that also cover damage caused as a favour. These are damages that you or your co-insured children inadvertently cause to others while doing them a favour.
Claims management: How to respond correctly when your child causes damage
If your child has caused damage, stay calm. Document the damage immediately, ideally with photos and notes on what happened. Report the damage to your personal liability insurance without delay – this can often be done online or by telephone within a few days. Do not admit liability or make any payments without first consulting your insurer. The insurer will review the facts of the case, the question of liability (capacity for tort, duty of supervision) and the extent of the damage. It will fend off unjustified claims or, in the case of justified claims, pay compensation up to the agreed insurance sum. Keep all relevant information and documents ready for the insurer. Good communication with the injured party is also important in order not to let the situation escalate. Let them know that you have reported the damage to your insurer. The co-insurance under the parents' policy provides an important protective shield here.
Request your individual risk analysis now
Solid personal liability insurance is essential for families with children to protect them against the financial consequences of both minor and major mishaps. The complexity of liability incapacity, duty of supervision and the various policy details makes a personalised assessment of your situation worthwhile. At nextsure, we support you in finding the right cover for your family. Have your insurance situation reviewed free of charge and receive concrete suggestions for optimisation. Request your individual risk analysis now and ensure comprehensive insurance cover.
More useful links
The Consumer Advice Centre provides comprehensive information on private liability insurance and its necessity.
On Laws on the Internet, you will find the full legal text of Section 828 of the German Civil Code (BGB) on the incapacity of minors to be held liable in tort.
Section 832 of the German Civil Code (BGB) on the liability of the person responsible for supervision is also available on Laws on the Internet.
The DGUV (German Social Accident Insurance) provides statistics on accidents involving schoolchildren, offering insights into the causes of accidents among children.
The Federal Statistical Office (Destatis) provides comprehensive information and data on households and families in Germany.
On Child Health Info, an initiative of the Federal Centre for Health Education (BZgA), you will find valuable advice on helping children grow up safely.
Specific tables and detailed data on families in Germany are also available on the website of Destatis.
FAQ
Is private liability insurance compulsory for children?
No, personal liability insurance is generally not compulsory in Germany, not even specifically for children. However, it is strongly recommended, as damage can quickly become very expensive.
What does personal liability insurance cover for children?
It covers personal injury, property damage and financial losses caused by the insured child to third parties. It is important to include cover for damage caused by children incapable of committing a tort and, where applicable, loss of keys.
My child is an adult and studying – does it need its own liability insurance?
As long as it is the child’s first degree course and the child is unmarried, they are usually still covered by their parents’ family liability insurance, often up to a certain age limit (e.g. 25). Please check the exact terms of your policy.
What does 'damage caused by children who are not legally liable is covered' mean?
This means the insurance will still pay even if your child under the age of seven (or ten in road traffic) causes damage, although they could not legally be held liable for it and you have not breached your duty of supervision.
How much should the insurance coverage amount be?
Experts recommend an insured sum of at least ten million euros; fifty million euros as a blanket sum for personal injury, property damage and financial losses is better, as personal injury in particular can result in very high costs.
What should I do if my child has caused damage?
Document the damage (photos, notes), report it to your insurer immediately and do not admit liability. The insurer will review the claim and handle the settlement.
