If you're looking for insurance, you'll soon come across the term civil or third-party liability (BA). But what exactly does this mean, and when does it apply?
What does third-party liability mean??
If someone suffers loss or damage as a result of error, carelessness or negligence on your part, then you are liable for this. That means that you are obliged to indemnify the victim: you will have to repair the damage or pay compensation.
The 'civil third party' points to the fact that the loss or damage was caused by one citizen to another, and not, for example, to the state.
If the loss or damage is the result of an accident where nobody is to blame, nobody is liable.
So what is third-party liability insurance?
In the event that someone files a claim for damages against you, then your insurer defends you against it. Should you be deemed liable, then your insurer will compensate the victim. However, this is on condition that you caused the loss or damage unintentionally. If nobody is liable, accident insurance can offer a solution.
Third-party liability insurance can be part of a car insurance, family insurance or fire insurance policy:
Suppose you get distracted momentarily by a phone call and hit another car. In that case, claim under your third-party liability car insurance, because this will cover damage you cause to others with your car. In fact, third-party liability insurance is required by law if you have a car.
During a party at a friend's house, you accidentally knock over an antique vase. These things happen, but fortunately you have a family insurance policy. This gives you financial protection if you or members of your family cause loss or damage to someone outside your family.
For owners and landlords
If something goes wrong in your home, the problem can extend to others. For example, a fire that spreads, or a leak in your bathroom that causes damp problems for your neighbours. To compensate the damage, claim under your fire insurance.
Fire insurance that you take out as a tenant also covers your liability as a tenant. Say you break a window while trying to drag your new wardrobe upstairs. If you damage your home unintentionally, the insurance will cover the costs.