Liability insurance in the Netherlands

Over 90 percent of people in the Netherlands have personal liability insurance (aansprakelijkheidsverzekering or AVP in Dutch). But what is liability insurance exactly, and is it mandatory? Here is what you need to know about liability insurance in the Netherlands.

Liability insurance companies in the Netherlands

The following companies offer expat-friendly liability insurance:

• Lemonade Insurance (in English)
• ABN AMRO
• Centraal Beheer

What is liability insurance (aansprakelijkheidsverzekering)?

Liability insurance is a type of insurance that covers the cost of damage caused by you (or a member of your household). This could be damage you cause to people or their belongings, even if accidental. With liability insurance, you avoid being confronted with nasty financial surprises.

Is liability insurance mandatory in the Netherlands?

No, liability insurance is not mandatory in the Netherlands, unlike basic health insurance and third-party liability insurance for cars (WA-verzekering).

While it is not mandatory, it is a good idea to get liability insurance if you want to avoid unexpected costs when unexpected things happen. Maybe your pet nips your neighbour or perhaps you spill some tea on your friend’s iPad. In these cases, liability insurance will cover you. You won’t have to break the bank to cover costs you are legally responsible for.

What is covered by personal liability insurance in the Netherlands?

In general, most personal liability insurance policies will cover the following:

• Personal injury to others
• Damage to other people's property
• Damage caused by your pet(s)
• Damage caused by your guests (if they have no insurance)

However, it is a good idea to thoroughly read your personal liability insurance policy to make sure you know exactly what is covered and what is not. Coverage may vary from insurance company to insurance company.

In general, when it comes to personal liability insurance in the Netherlands, the insured amount will be between 1.000.000 and 2.500.000 euros.

What is not covered by private liability insurance in the Netherlands?

In general, the following is not covered by personal liability insurance in the Netherlands:

• Damage caused by or related to a motorised vehicle (that is covered by your car insurance)
• Damage to rented or borrowed items
• Damage caused intentionally
• Damage caused by activities undertaken as part of a business (that is covered by business liability insurance) 

Does Dutch liability insurance cover you while you are abroad?

With liability insurance, you are covered when you are going abroad for a holiday. If you are going on holiday with your family, they will also be covered.

However your liability insurance is normally only valid so long as you have a permanent place of residence in the Netherlands. If you decide to move back to your home country, your insurance coverage will lapse, and you will no longer be insured. In this case, you should cancel your insurance policy. 

Who is covered by your personal liability insurance policy?

When taking out personal liability insurance in the Netherlands, you can choose who is covered. This means that you can not only take out insurance for yourself, but also for your family members.

How much does it cost to get personal liability insurance in the Netherlands?

Personal liability insurance doesn’t cost a whole lot in the Netherlands. You should be able to find a policy that costs just a couple of euros per month. Of course, the size of your premium depends entirely on your personal situation, your coverage, and the insurance company you have decided to go with.

Differences between WA insurance and liability insurance

Sometimes people in the Netherlands confuse WA insurance, also called third party liability insurance, with personal liability insurance. Here are the key differences between them:

• WA insurance only covers claims relating to your motor vehicle. Personal liability insurance covers most other areas of your life.
• If you own or buy a car, taking out WA insurance is mandatory. Personal liability insurance is not mandatory.
• WA insurance also reimburses intentional damage to the injured party, which is not the case with personal liability insurance.
• Personal liability insurance is, in general, a lot cheaper than WA insurance.

How to terminate your liability insurance contract

How and when you can cancel your liability insurance differs per insurance company. Most have a minimum term of one year, while others offer a monthly cancellation option. Please consult your insurer’s policy documents to see which conditions apply.

It's worth noting that most insurance companies in the Netherlands usually let you cancel your policy online.