So-called unreal financial losses are often the result of personal injury or damage to property. Let’s say you accidentally damage a self-employed person’s car. First of all, this is property damage. However, the car has to be taken to the garage for repairs. During this time, the owner cannot work. So, she suffers a financial loss which is your fault.
We have compiled the most important questions and information on the subject of "financial loss" for you here.
A financial loss occurs when someone suffers a direct or indirect financial loss which is your fault. A distinction is made between real and unreal financial losses.
A real financial loss is when another person suffers a financial loss caused by you.
This is the case, for example, when a financial advisor, tax advisor or lawyer gives false advice. In other words, a real financial loss is not the result of damage to property or personal injury, but an independent incident.
Real financial losses occur mainly in a professional context. Anyone who advises other people as a self-employed person should therefore take out separate pecuniary damage liability insurance. For members of some professions, this is obligatory. These include notaries, tax consultants, lawyers and auditors.
Examples of real financial losses in a professional context:
Examples of financial losses in a private context:
In these and similar cases, you will have to compensate for the damage caused.
Unreal financial losses are the result of personal injury or damage to property. If a person is injured through your actions, he or she may be temporarily unable to work.
Suppose you are riding your e-scooter and accidentally collide with a passer-by. The passer-by is knocked to the ground, breaks his arm in the fall and suffers a head injury. First of all, the incident is personal injury. However, the injured person is an independent craftsman. Due to the injury, he is not able to work for several months. He therefore suffers a financial loss. Since this is a consequence of the personal injury, it is an "unreal financial loss".
Perhaps you have bought a new wardrobe and are transporting it home yourself from the furniture store in your car. When you unload it, you damage a snack bar trailer that is parked right next to your parking space. The injured party first suffers direct property damage. However, he cannot use his trailer until the repairs are completed. You will also have to take responsibility for this loss of earnings.
Your personal liability insurance covers unreal financial loss resulting from damage to property or personal injury. Real financial losses are also covered as long as they do not arise from:
Remember that your personal liability insurance only covers your private life. If you need liability or financial loss insurance for your profession, there is separate insurance for this.
If you accidentally cause a financial loss, according to the German Civil Code (BGB), you are obliged to make good the damage, just as in the case of personal injury or property damage. Your private liability insurance protects you against the financial consequences of financial loss.
It is advisable to set the insured sum as high as possible. If the claim is higher than the amount insured, you will have to pay the difference out of your own pocket. With Coya, the highest possible contribution margin is 30 million euros. With this, you are very well covered in case of damage.
Your liability insurance regulates the financial loss incurred. This means that it pays for the financial loss incurred - up to the contractually agreed insured amount.
If it is an unreal financial loss, your private liability insurance also covers the property damage or personal injury incurred, in addition to the financial loss.
In general, your private liability insurance does not cover any damages in connection with your professional activity.
If you have caused a real financial loss, which is due to:
your private liability insurance will not cover the damage.
For this, you need separate insurance. If you are a professional, a combination of financial loss liability insurance and business liability insurance is recommended.
Your private liability insurance covers three areas:
You are insured EU-wide as long as your residence is in Germany. Outside the EU, your insurance cover is limited to five years.
If you cause yourself financial damage, your private liability insurance does not apply. If you decide to take out family private liability insurance, the damage that co-insured persons cause to each other is also not covered.
Your private liability insurance will only protect you in the event of claims for damages by third parties. Third parties are persons to whom you have inadvertently caused damage and who are not covered by your insurance contract.
No. In the case of intentionally caused financial loss, you are personally liable.
Your private liability insurance also protects you from claims for damages by third parties and financial disadvantages in the case of personal injury and property damage.
