Private liability insurance for children: Ensuring comprehensive protection for your family
5 May 2025
10
Minutes
Katrin Straub
CEO at nextsure
A moment of inattention, and it happens: your child causes damage. Discover how personal liability insurance for children provides financial security and what you need to know about incapacity for tort and duty of supervision.
The topic in brief and concise terms
Children under the age of seven (or under ten in road traffic situations) are not liable for damages, unless the parents have failed in their duty of supervision.
A personal liability insurance policy for families should explicitly include damage caused by minors who lack legal capacity to avoid gaps in coverage.
Children are usually covered by their parents' liability insurance until the end of their first professional training or initial studies, even if they no longer live at home.
Understanding and Properly Handling Lack of Criminal Responsibility in Children
According to § 828 paragraph 1 of the German Civil Code (BGB), children under the age of seven are considered incapable of committing a tort. This means they cannot be legally held accountable for any damage they cause. In the context of moving traffic, this age limit is even set at ten years. Many parents are surprised to learn that they are not automatically liable for the damages caused by their children who cannot legally commit a tort. An exception exists if parents have violated their duty of supervision. A good private liability insurance can still provide coverage under certain circumstances, especially if damages caused by children who cannot legally commit a tort are explicitly included. This often helps maintain peace, for instance, if a friend's child is involved. The specific conditions vary, so it's essential to check the policy details.
Parental Duty of Supervision: Understanding Legal Foundations and Practical Implications
The parental duty of supervision is enshrined in § 1626 BGB and obligates parents to care for, educate, and supervise their children. A breach of this duty can lead to parents being liable for damages caused by their children, even if the children are incapable of committing a tort. The extent of the required supervision depends on the child's age, character, and development, as well as the specific situation. A four-year-old child requires closer supervision than a ten-year-old. Courts examine whether the duty of supervision was sufficiently fulfilled in the specific case in the event of damage. Liability insurance is important as it also assesses whether the claims for damages are justified. Jurisprudence shows that constant supervision is not always necessary; children should also learn to act independently.
Examples of Claims from Practice: When Personal Liability Insurance for Children Applies
Imagine your eight-year-old son is playing football in the garden and the ball lands in the neighbour's conservatory window – damage worth several hundred euros. Or your daughter accidentally scratches a parked car while playing with her scooter, incurring repair costs of over a thousand euros. In such cases, a strong personal liability insurance is invaluable. It usually covers the cost of damage to third-party property caused by your children, provided the children are legally responsible or there is a breach of duty of supervision. Particularly important is the inclusion of coverage for damage caused by children not legally responsible, to ensure you're safeguarded here as well. Another example: your child knocks over an expensive vase at a friend's house – the insurance could cover that too. The cost of liability insurance is minimal compared to potential damage sums.
Here are some typical instances where personal liability for children becomes relevant:
The child damages other people's property while playing (e.g., toys, smartphone).
While cycling, the child causes an accident with property or personal injury.
The child spills juice over a friend's laptop.
A ball throw shatters a window pane.
The child loses the key to a rented apartment (provided key loss is insured).
These examples illustrate how quickly and unexpectedly damage can occur.
Special case of key loss: What to consider with children
The loss of a key, especially to a rental apartment with a central locking system, can quickly cause costs of several thousand euros. If your child loses another person's private key, the personal liability insurance can cover the costs for replacing locks or the entire locking system, provided this component is included in the contract. Ensure that the loss of someone else's keys is explicitly covered in your policy. Coverage amounts for key loss can vary; often they are up to fifty thousand euros. It is advisable to check the exact conditions and any possible deductibles. Not every personal liability insurance for children automatically covers every key loss. Insuring work-related keys can also be sensible if older children, for example, have a key for a part-time job.
Age limits and transition phases: Optimising insurance coverage for older children, apprentices, and students
Children are usually co-insured under the parents' family liability insurance as long as they are attending school and are in their first vocational training (apprenticeship or university). This co-insurance often applies even if the child has already established their own household for education or studies. The age limits for co-insurance can vary depending on the insurer, but they are often 25 or 27 years. It is important that it is the first training; a second degree or training after already completing a professional career usually requires separate liability insurance. Even after a Bachelor's degree, a directly consecutive Master's programme is still considered initial training. Clarify the exact co-insurance conditions with your insurer. As soon as your child gets married or takes up regular employment and earns their own money, the co-insurance with the parents usually ends, and a separate liability insurance becomes necessary.
Our expert tip: Check the terms and conditions of your family liability insurance carefully regarding age limits and training clauses. This ensures that your offspring is optimally protected even during transition phases, such as between school graduation and the start of training or studies. Some policies offer special regulations for this.
Expert knowledge: Understanding § 828 BGB and current judgments on incapacity to commit a tort and supervisory duty
Section 828 BGB is the central regulation concerning the non-liability for torts of minors. Paragraph one states that anyone who has not yet reached the age of seven is not responsible for any damage they cause to another person. Paragraph two deals with the special status in road traffic up to the age of ten. Paragraph three clarifies that minors over the age of seven or ten are not liable if they lack the necessary insight into the responsibility at the time of the harmful act. Courts interpret these provisions on a case-by-case basis, taking into account the child’s maturity and development. Recent rulings consistently show that the level of supervisory duty heavily depends on the circumstances. For example, a three-year-old child who is thought to be asleep does not need to be supervised continuously if the parents are within earshot (see Finanztip example). A liability insurance may also be relevant for damages within the family if certain conditions are met. It is important to know the details.
Important aspects from case law regarding the duty of supervision are:
The child's age: Younger children require more intensive supervision.
The child’s character: A particularly lively or reckless child requires more attention.
The local conditions: A dangerous environment (e.g., construction site, busy road) increases the requirements for supervision.
The nature of the child’s activities: Closer monitoring is necessary during potentially dangerous play.
The visibility of dangers to the child and others.
These factors are considered by courts when assessing a possible breach of the duty of supervision.
Choose the right personal liability insurance for families with children
When choosing personal liability insurance for families with children, you should pay attention to several important points. A sufficiently high insurance sum is essential – at least ten million euros are recommended, or better fifty million euros for personal injury, property, and financial damages. The clause covering damages caused by children who are not legally responsible is indispensable. This protects against financial burdens and disagreements if your child under seven causes damage and you have not breached your duty of supervision. Also, check if children are automatically insured or if they need to be named. Other sensible inclusions may be: loss of keys (private and possibly professional), damage to rented items (tenant's liability), and claims default coverage. Compare the benefits and special offers for families. Our expert tip: Look for tariffs that also cover courtesy damages. These are damages that you or your insured children cause to others gratuitously during a favour.
Claim management: How to behave correctly if your child causes damage
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More useful links
The Consumer Association provides comprehensive information on personal liability insurance and its necessity.
On Gesetze im Internet, you can find the full legal text of § 828 of the German Civil Code (BGB) regarding the incapacity of minors to commit a tort.
§ 832 of the German Civil Code (BGB) regarding the liability of the person responsible for supervision is also available on Gesetze im Internet.
The DGUV (German Social Accident Insurance) provides statistics on school accidents, offering insights into the causes of accidents involving children.
The Federal Statistical Office (Destatis) offers comprehensive information and data on households and families in Germany.
On Kindergesundheit-Info, a service of the Federal Centre for Health Education (BZgA), you can find valuable tips on the safe upbringing of children.
Specific tables and detailed data on families in Germany are also available on the Destatis website.
FAQ
Is personal liability insurance mandatory for children?
No, personal liability insurance is generally not mandatory in Germany, not even specifically for children. However, it is highly recommended since damages can quickly become very costly.
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 damages caused by children who are incapable of committing a tort and, if applicable, key loss.
My child is of legal age and studying – do they need their own liability insurance?
As long as it is the first degree and the child is unmarried, they are usually still covered under the parents' family liability insurance, often up to a certain age limit (e.g., 25 years). Check the exact conditions of your policy.
What does 'damage caused by mentally incompetent children also insured' mean?
This means the insurance also provides coverage if your child under the age of seven (or ten in road traffic) causes damage, even though they could not be held legally liable for it and you have not violated your duty of supervision.
How much should the insurance coverage amount be?
Experts recommend an insurance sum of at least ten million euros, though it is better to have a flat rate of fifty million euros for personal, property, and financial damages, as personal injuries, in particular, can lead to very high costs.
What to do if my child has caused damage?
Document the damage (photos, notes), report it to your insurance immediately, and do not admit fault. The insurance company will assess the case and handle the settlement.
