Are children automatically covered by liability insurance? Your comprehensive guide to family liability insurance
01.05.25
7
Minutes
Katrin Straub
Managing Director at nextsure
One moment of inattention, and it happens: your child causes damage. But are children automatically covered by liability insurance? This article explains how insurance cover for children is regulated and what you as parents need to know to be properly protected in an emergency.
The topic in brief and concise terms
Children are generally covered under their parents’ family liability insurance until the end of their first vocational training or first degree course, often up to a maximum age of 25 or 27.
Children under seven years old (under ten years old in road traffic) are deemed incapable of liability in tort and are not liable for damages; parents are liable only if they breach their duty of supervision.
A good family liability insurance policy should cover damage caused by children who are not legally responsible and offer a high sum insured.
Basics clarified: How co-insurance for children works
Many parents ask themselves: Are children automatically covered by liability insurance? Yes, as a rule, children are co-insured under their parents’ family liability insurance. This protection usually applies until they reach the age of 18. An important distinction concerns delictual incapacity. Children under seven are regarded as incapable of liability and cannot be held responsible for damage. In moving road traffic, this age limit is even ten years. Nevertheless, it is advisable for parents’ liability insurance to also cover damage caused by children who are incapable of liability, as this is often in the interests of good relations with the injured party. The exact conditions, such as how long children are co-insured and under what circumstances, depend on the respective insurance contract. It is therefore worth taking a look at the policy of your private liability insurance. Understanding these basics is the first step towards comprehensive protection.
Case studies: When 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, family liability insurance that also covers damage caused by children capable of being held liable would cover the costs. Another example: your 16-year-old daughter accidentally damages her friend’s expensive smartphone during a visit. Here too, the parents’ liability cover usually applies. It is important that the parents have not breached their duty of supervision. Parents are not generally liable for their children, only if they themselves breach a duty. The sum insured should be set sufficiently high, as personal injury in particular can quickly result in costs running into the millions. Many policies cover damage caused by children who are not legally liable up to a certain amount, for example €50,000. These examples show how important good family cover is. Next, we will look at the age limits in more detail.
Age limits and education: When does co-insurance end?
The inclusion of children under their parents’ liability insurance does not necessarily end on their 18th birthday. If the adult child is still in their initial vocational training, whether an apprenticeship or a first degree course, the insurance cover often remains in place. This also applies if the child already has their own home for the training or studies. A master’s degree directly following a bachelor’s degree is generally still counted as part of initial education. The following situations typically lead to the end of co-insurance:
The child gets married.
Taking up permanent employment after completing initial education.
Starting a second apprenticeship or a second degree course after completing vocational training.
Completing the training and more than a year of job searching.
Our expert tip: Always clarify the exact terms and age limits, often between 25 and 27, directly with your insurer. Cover can also continue during a Voluntary Social Year (FSJ) or Federal Voluntary Service (BFD). The question how long children remain co-insured therefore needs to be assessed individually. Now on to the legal details.
Legal aspects: understanding incapacity for tort liability and duty of supervision
The German Civil Code (BGB) clearly governs liability for damage. Under Section 828 BGB, children under the age of seven are not liable in tort. This means they are not legally responsible for damage they cause. In flowing road traffic, this incapacity in tort applies even until the age of ten is reached. For children between seven (or ten in road traffic) and 18 years of age, the term conditional capacity for tortious liability is used; in each individual case, it is examined whether the child had the necessary capacity for insight. As a general rule, parents are only liable for their children if they have breached their duty of supervision (§ 832 BGB). What exactly constitutes a breach of the duty of supervision depends on many factors: the child’s age, maturity and character, as well as the specific situation. A recent ruling by the Federal Court of Justice (case no. VI ZR 51/08), for example, states that for a five-and-a-half-year-old child on a playground, checks at intervals of no more than 30 minutes can be sufficient. It is a misconception that signs such as “Parents are liable for their children” establish blanket liability. The question whether liability insurance is mandatory does not arise, but it is essential. These legal framework conditions are crucial for insurance cover.
Optimal protection: What you should look out for in family liability insurance
To ensure optimum protection, you should pay attention to a few points when taking out family liability insurance. A sufficiently high sum insured, ideally in the tens of millions, is essential so that you are also covered in the event of serious personal injury. Make sure that damage caused by children who are not legally responsible is explicitly included in the cover; many policies offer sums insured of, for example, €50,000 or more. Also check whether damage caused while helping out free of charge is covered. The loss of third-party private or business keys can also become expensive and should be included in the insurance cover. Our expert tip: Compare not only the price, but above all the benefits. A good liability insurance policy offers comprehensive protection. The following benefits are often worthwhile:
Cover for children who are not legally responsible, up to an appropriate sum.
High sums insured for personal injury, property damage and financial losses.
Inclusion of key loss (private and business).
Cover for damage abroad (worldwide).
Claims default cover, should you suffer damage and the person responsible be unable to pay.
A careful choice protects your family as well as possible. This brings us to the question of when a child needs its own liability insurance.
Conclusion and your next step towards security
In summary, children are often covered under their parents’ personal liability insurance; however, important details such as age limits, education status and the rules on liability in cases of incapacity must be taken into account. Family liability insurance is an indispensable building block for your family’s financial security and protects against the often unpredictable consequences of minor and major mishaps. Reviewing and, where necessary, adjusting your existing insurance cover is an important step. Remember that good protection not only settles claims, but also brings peace of mind in everyday life. We will be pleased to provide you with personalised advice. Request an individual risk analysis now: have your insurance situation checked free of charge and receive concrete suggestions for optimisation.
More useful links
The portal Gesetze im Internet provides the full text of the German Civil Code (BGB) and, in particular, section 828, which governs the liability of minors for damage they cause.
Also on Gesetze im Internet you will find section 19 of the Criminal Code (StGB), which defines criminal responsibility according to age.
The Verbraucherzentrale provides comprehensive information on the need for and benefits of private liability insurance.
The Statistische Bundesamt (Destatis) publishes press releases with relevant statistics that also concern children.
A detailed publication by the Statistischen Bundesamtes (Destatis) is dedicated to road traffic accidents involving children.
The Bundesministerium für Gesundheit provides comprehensive information on the prevention of accidents involving children.
The Bundeszentrale für politische Bildung (bpb) explains the term criminal responsibility for minors and the associated age limits in its lexicon.
FAQ
Are my children automatically covered under my liability insurance?
Yes, with family liability insurance, your minor children are usually covered too. For adult children, this often continues during their first period of training or their studies.
What happens if my child, who is not legally liable, causes damage?
Legally, your child is not liable if under seven years old (or under ten in road traffic). If you have not breached your duty of supervision, you are not liable either. Good policies still cover such damage up to an agreed sum, in order to preserve peace with the injured party.
When does my child need their own liability insurance?
A separate liability insurance policy becomes necessary if your child gets married, takes up permanent employment after initial training, or begins a second course of training and no longer meets the requirements for being covered under your policy.
How high should the sum insured be in family liability insurance?
Experts recommend a sum insured of at least ten million euros; 50 million euros is better, as personal injury claims in particular can cause very high costs.
Is my child also covered by my liability insurance while abroad?
As a rule, yes, the cover provided by private liability insurance often applies worldwide, at least for temporary stays. You should refer to your policy documents for the exact conditions or ask your insurer.
What if my child breaks something at a friend's house?
If your child is capable of delict (that is, for example, over seven years old and has the capacity to understand) and negligently causes damage to friends, your family liability insurance will usually step in.
