About Personal Liability (or how insurers going Dutch)

The Netherlands is a country of bicycles and as kids go to school on bike and sometimes hitchhiked on the back carrier of a friends. When I was a kid I once hitchhiked on my friend Joris’ carrier after school and jumped a bit too enthusiastically on his carrier, his rear wheel did not survived the ordeal and we had to walk home and he had to tell his mum about the damage. Joris already damaged the front light couple weeks earlier and was worried sick about notifying his parents that they need to fork out some money for repairing the wheel. Long story short my cautious father had purchased a Personal Liability insurance that includes cover for direct family members including his wayward wheel crushing son and the policy paid out for the damage.

In Hong Kong we don’t see stand alone Personal Liability insurances anymore, most people will have Personal Liability included in their Home Insurance Package. The most common insurances in Hong Kong that include Personal Liabilities are:

1. Home Package Insurance (or also Household Insurance, Home Content insurance)
2. Travel Insurance

So if you every taken out one of the above policies you might have seen the term Personal Liability included in the cover. But what does it exactly cover? Basically it covers if you injure someone or damage their property and when you are expected to pay for the damage and/or medical cost for mending the injury.

Cover while you become legally liable to pay to a third party as compensation in respect of accidental death or accidental injury or accidental property damage occurring anywhere in the world

(Chubb MyHomeGuard 2022 Brochure)

A travel insurance will also cover Personal Liability for your family and yourself but this is of course only for the period of your journey, the travel insurance ends as soon as you return back to Hong Kong and pass through customs. In case you have a Home Package Insurance and a Travel Insurance during the same period and you become legal liable for something then this does not necessary mean you have “Extra” or “More” Liability cover in this case. Insurers need to be made aware that there is another policy that covers the same risk and through a so called “Contribution Clause” the insurers essentially “going Dutch”, splitting the cost of your compensation between them both.

The most cost effective way to cover your Personal Liability is by taking out a Home Package Insurance as an occupant or renter or as a home owner.

More information
To learn more about Travel Insurance, or to get a quote, please visit our Home Insurance page
The benefit details mentioned in this article are from the Chubb MyHome Guard 2022 Brochure

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Established in 2015, Charings is committed to helping protect you in all walks of life. We are innovators in personal, commercial and specialist insurance. For a truly personal and tailored solution that protects you, contact us to schedule a call.

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