Are children automatically covered by liability insurance? Your comprehensive guide to family liability insurance
1 May 2025
10
Minutes
Katrin Straub
CEO at nextsure
A moment of inattention, and it happens: your child causes damage. But are children automatically covered by liability insurance? This article explains how insurance coverage for children is organized and what parents need to know to be properly insured in case of an emergency.
The topic in brief and concise terms
Children are usually insured under their parents' family liability insurance until the end of their first vocational training or undergraduate studies, often up to a maximum of 25 or 27 years old.
Children under the age of seven (or under ten in road traffic) are considered incapable of committing an offence and are not liable for damages; parents are only liable if they fail in their duty of supervision.
A good family liability insurance should cover damages caused by children incapable of committing an offence and offer a high insurance sum.
Grundlagen geklärt: How child co-insurance works
Many parents ask themselves: Are children automatically covered by liability insurance? Yes, children are generally covered by their parents' family liability insurance. This protection usually applies until the age of 18. An important distinction concerns incapacity for tort. Children under seven years of age are considered incapable of tort and cannot be held liable for damages. In moving traffic, this age limit is even ten years. Nevertheless, it is advisable for parental liability insurance to also cover damages caused by children incapable of tort, as this is often in the interest of maintaining good relations with the injured party. The exact conditions, how long and under what circumstances children are covered, depend on the respective insurance contract. Therefore, it is worth taking a look at the policy of your private liability insurance. Knowing these basics is the first step towards comprehensive protection.
Case Studies: When the Family Liability Insurance Covers Children
Imagine your eight-year-old son accidentally kicks the ball through the neighbour's window while playing football in the garden. In this case, a family liability insurance that also covers damages caused by minors would cover the costs. Another example: your 16-year-old daughter accidentally damages her friend's expensive smartphone during a visit. Here too, the protection of parental liability generally applies. It is important that parents have not neglected their duty of supervision. This is because parents are not automatically liable for their children, but only in cases of their own negligence. The insurance sum should be chosen sufficiently high, as personal injuries can quickly cause costs amounting to millions. Many policies cover damages caused by minors up to a certain amount, for example, 50,000 euros. These examples show how important good family protection is. Next, we will take a closer look at age limits.
Age limits and education: When does co-insurance end?
The inclusion of children in the parental liability insurance does not automatically end when they turn 18. If the adult child is still in their initial vocational training, whether an apprenticeship or first degree, the insurance cover often remains in place. This also applies if the child already has their own flat for education or study purposes. A master's degree immediately following a bachelor's is generally still considered part of the initial education. The following situations typically lead to the cessation of joint insurance:
Marriage of the child.
Starting a permanent job after completing initial training.
Commencing a second training course or a second degree after completing vocational training.
Completion of education followed by more than a year of job searching.
Our expert tip: Always check the exact conditions and age limits, often between 25 and 27 years, directly with your insurer. Insurance coverage can also continue during a Voluntary Social Year (FSJ) or Federal Voluntary Service (BFD). The question of how long children are co-insured must therefore be assessed individually. Now on to the legal details.
Legal Aspects: Understanding Incapacity for Wrongdoing and Supervisory Duties
The Bürgerliches Gesetzbuch (BGB - Civil Code) clearly regulates liability for damages. According to § 828 of the BGB, children under the age of seven are incapable of committing torts. This means they are not legally responsible for damages they cause. In flowing traffic, this incapacity extends even until the child reaches the age of ten. For children between seven (or ten, in traffic situations) and 18 years old, we speak of conditional capacity to commit torts; in these cases, it is individually assessed whether the child had the necessary capacity for insight. Parents are only liable for their children if they have neglected their supervisory duty (§ 832 BGB). What exactly constitutes a breach of supervisory duty depends on many factors: the child's age, maturity, and character, as well as the specific situation. A recent ruling by the BGH (Ref. VI ZR 51/08) indicates, for instance, that for a five-and-a-half-year-old child on a playground, checking at intervals of no more than 30 minutes may be sufficient. It is a misconception that signs like “Parents are liable for their children” establish blanket liability. The question of whether liability insurance is mandatory does not arise, but it is essential. These legal frameworks are crucial for insurance coverage.
Optimal coverage: What you should consider for family liability insurance
To ensure optimal protection, there are a few points to consider with your family liability insurance. An adequately high sum insured, ideally in the double-digit million range, is essential to be covered even in the event of serious personal injuries. Make sure that damages caused by children lacking legal capacity are explicitly covered; many policies offer coverage amounts of, for example, 50,000 euros or more here. Also check whether courtesy damages, i.e., damages during unpaid assistance, are covered. The loss of third-party private or business keys can also be expensive and should be included in the insurance coverage. Our expert tip: Don’t just compare the price, but especially the services. A good liability insurance provides comprehensive protection. The following services are often advisable:
Co-insurance of children lacking legal capacity up to an appropriate sum.
High coverage amounts for personal, property, and financial damages.
Inclusion of key loss (private and business).
Coverage of damages abroad (worldwide).
Default claims coverage, in case you incur a damage and the perpetrator cannot pay.
A careful selection provides the best possible protection for your family. This brings us to the question of when a child needs their own liability insurance.
Conclusion and Your Next Step to Security
In summary, children are often co-insured under their parents' liability insurance, but important details such as age limits, educational status, and the rules on culpability must be taken into account. Family liability insurance is an indispensable component for the financial security of your family and protects against the often unforeseeable consequences of small and large mishaps. Reviewing and, if necessary, adjusting your existing insurance coverage is an important step. Remember that good coverage not only regulates damages but also creates peace of mind in everyday life. We are happy to offer you individual advice. Request an individual risk analysis now: Have your insurance situation checked for free and receive concrete optimization suggestions.
More useful links
The portal Gesetze im Internet offers the full text of the Civil Code (BGB), including Section 828, which deals with minors' liability for damages caused.
Also on Gesetze im Internet, you can find Section 19 of the Criminal Code (StGB), which defines criminal responsibility by age.
The Consumer Advice Centre provides comprehensive information on the necessity and benefits of personal liability insurance.
The Federal Statistical Office (Destatis) publishes press releases with relevant statistics, including those relating to children.
A detailed publication by the Federal Statistical Office (Destatis) is dedicated to traffic accidents involving children.
The Federal Ministry of Health offers comprehensive information on the prevention of child accidents.
The Federal Agency for Civic Education (bpb) explains in its glossary the term criminal responsibility and the associated age limits.
FAQ
Are my children automatically included in my liability insurance?
Yes, in a family liability insurance policy, your minor children are usually covered. This often continues for adult children during their initial training or studies.
What happens if my child who is not legally responsible causes damage?
Legally, your child under the age of seven (or ten in road traffic) is not liable. If you have not breached your duty of supervision, you are also not liable. Good insurance policies still cover such damages up to an agreed amount to maintain goodwill with the injured party.
When does my child need their own liability insurance?
A personal liability insurance becomes necessary when your child gets married, starts a permanent job after their initial training, or begins a second training and no longer meets the requirements for co-insurance.
What should the sum insured in family liability insurance be?
Experts recommend an insurance amount of at least ten million euros, with 50 million euros being preferable, as personal injuries, in particular, can result in very high costs.
Is my child also covered by my liability insurance during a stay abroad?
As a rule, yes, the coverage of private liability insurance often applies worldwide, at least for temporary stays. You should consult your policy documents or inquire with your insurer for the exact terms.
What if my child breaks something at a friend's house?
If your child is liable (i.e., over seven years of age and possesses the capacity for discretion) and negligently causes damage to friends, your family liability insurance usually steps in.
