Personal liability insurance. Keep calm when some­thing goes awry.

Personal liability insurance is not mandatory in Switzerland, but it is highly recommended.

If you, your children or your pets unintentionally cause someone else to suffer a loss, you are liable for that out of your own assets. Personal liability insurance covers the cost of small acts of carelessness, such as when you scratch the parquet flooring in your rental accommodation, through to costs incurred when another person is injured. This includes not just treatment costs, but also costs for consequential losses such as the injured person’s loss of earnings – in other words, it quickly becomes very expensive. That is why personal liability insurance is indispensable.

When taking out your personal liability insurance, you can choose between a sum insured of CHF 5 million, CHF 10 million, CHF 15 million or CHF 20 million. The sum insured needs to be in the millions, as very high costs are quickly incurred, especially when other people are injured.

Everyone living with you in the same household is covered by your personal liability insurance policy. This is also true of children who temporarily live elsewhere, provided they are still officially registered as living at home.

If you move in with your partner, you only need one personal liability insurance policy. Extend one policy to cover a multi-person household and cancel the other. That way, you can save on the premium.

The neighbour’s window is broken or there is some scribbling on the wall in your rental accommodation – small mishaps can quickly happen. But don’t worry, children are covered by their parents’ personal liability insurance. This includes any losses that occur when friends or grandparents are minding the children, for example.

If, on the other hand, your child causes a loss at the daycare centre, it is usually the daycare centre that is liable, as it is responsible for minding the child.

Personal liability insurance also covers losses that you cause while carrying out your job as a self-employed person. At least if your annual income does not exceed CHF 40,000. If you earn more than CHF 40,000 a year, you need a separate professional indemnity insurance policy.

The terms and conditions apply to self-employed people in the following occupations:

Hairdresser, cosmetician, pedicurist/manicurist, nail designer, child minder, babysitter, au pair, tutor, dog-sitter, house-sitter, caretaker, cleaner, musician, actor, baker, pastry chef, confectioner, caterer, entertainer, farmer or photographer.

In the case of all other activities in self-employment, losses are covered by your personal liability insurance, provided your annual turnover is no more than CHF 5,000.