Liability insurance (AVP) information

There are many different ways in which damage and injury can occur and that you are at fault and liable to cover the costs. For example, if someone is injured and it is your fault, or if you accidentally knock over an expensive item in a store and damage it beyond repair, both of these things could be covered by private liability insurance (AVP).

Table of contents

    man and woman looking at the policy of a liability insurance

    Why is liability insurance useful and what does it cover?

    Taking out liability insurance as a private individual provides you with some protection from the potential sky-high costs of being liable for an accident, injury, or breakdown. It would be useful if liability insurance was made compulsory, as it would help so many people who find themselves in expensive situations. Any person who unknowingly inflicts personal injury on another person could end up incurring considerable costs in compensation due. The same applies to damage caused to other people’s property, where damages could run into thousands of Euro. The average person cannot afford to repay a large damage claim without the assistance of a liability insurer, which also damages the victim, as they cannot recover damages from a person who does not have the money to pay. This is why liability insurance is so useful, with affordable premiums.

    What is the difference between AVP and WA insurance?

    AVP is insurance that covers personal, private liability for those who have caused damage or injury to another party. WA insurance is a mandatory third party liability, basic car insurance. WA insurance covers the damage caused to another car.

    man and woman looking at a liablitily insurance

    Liability insurance coverage

    Liability insurance for a private individual covers any damage that you cause to another person. This does not concern the damage caused to someone else’s car. The AVP not only covers material damage, but also personal injury. Examples of damage that is compensated includes:

    • “You have arrived at a friend’s house. This friend is a photographer and proudly shows you his very expensive new camera. He puts the camera down on the table for a moment. You drink a glass of wine together and disaster strikes: you accidentally bump your glass of wine over the new camera. It is not on purpose, but you have broken the camera by your actions. You can appeal to your liability insurance to cover the cost of the damages.”

    • “You have a dog. It is a true part of the family, and a guard for the family home. One day, a neighbour comes by the door and makes a gesture that startles your dog, leading to it reacting and biting the neighbour. The dog is not acting maliciously, rather as a frightened animal. The neighbour required treatment and stitches for the wound and infection at the local hospital and incurs a cost for that. The dog is your legal responsibility, and therefore your AVP policy can be activated to compensate all damages.”

    • “The AVP also applies to your children if you have family liability insurance. Your child is out riding their bike and accidentally hits the neighbour’s parked car. This damage will be covered by your family liability insurance.”

    More information about AVP coverage

    Family cover or single person cover?

    This will depend on whether you are a single person, or if you have a family. As stated above, you can cover your family as part of your insurance policy, covering the cost of any damages incurred. There is a distinction made by insurers, and a single person will find that their policy is slightly cheaper than the cost of family insurance.

    Necessity of liability insurance

    According to the Motor Vehicle Liability Insurance Act, third-party insurance is only mandatory for those who have a car, a motorcycle, a scooter, a moped, or an electric bicycle. This insurance covers any damage caused for which the driver is liable.

    What does liability insurance not cover?

    Liability insurance does not cover damage related to motor vehicles, for this you must speak with the insurer you have third-party insurance with. Damage to rented or borrowed items is not covered by the policy, as it is not your own property. The same applies for damage caused intentionally. For exact coverage, every policy will be slightly different, so always check the details before signing.

    Tip: Most insurers offering a family policy make it mandatory to report when there has been a new addition to the family. They automatically co-insure any new children on the existing family insurance policy.

    Liability and contents

    Was damage caused by someone else’s actions? This person must be held liable for the damage. This can be a more complex way to pay the damages than it would be to compensate yourself through your own contents insurance. In many cases, the damage is also covered by your own home contents insurance. It is always advisable to claim the damage caused by someone else against your own. The contents insurance offers coverage at replacement value, giving the insured the amount required to replace any items damaged. If you rely on someone else’s liability insurance, you may receive a lower compensation amount than you need to adequately replace damaged goods.

    Liability for rented items

    Rented items are not insured with most liability insurers. The same applies for the leasing of any equipment. However, some people or businesses will offer insurance when they rent out goods and this can be useful. You will also find a limited number of insurance companies that do provide coverage when renting moveable or immovable property, for example when renting a holiday home.

    Dangerous sport

    In most cases, the liability insurance will not cover the practice of sports, and dangerous sports in particular. Although most insurers will not cover the damage and injury caused to fellow players and athletes within these sports, they do reimburse the damage caused by athletes to spectators who are not participating in the game. You should seek out a special sports clause within your liability policy.

    The importance of business liability insurance

    Business liability insurance concerns coverage for legal accountability, for those people who cause damage whilst working for a company in a professional capacity. Liability for private individuals (AVP) only covers damage caused as a private individual, during free time, and away from professional activities. Business liability covers damages caused to other people and property by business.

    Liability on the internet

    The internet has become a central part of our lives. We are constantly online, sharing everything with each other on social media, via email, and other digital channels. What if your child does something on the internet that harms others? You can be held liable for it, so it is important to be aware of the risks and the responsibilities you have as a parent. AVP insurance offers coverage for these types of situations.

    Liability in traffic

    From a minor accident to serious collisions causing personal injury, there is a lot that can happen in traffic. If you are involved and cause damage or injury, you may be liable. AVP insurance provides cover for this liability in some cases. For example, you are covered if you cause an accident as a cyclist or pedestrian, but not as a car driver (where you are obliged to take out further liability insurance).

    Liability as an entrepreneur

    As an entrepreneur you bear a certain responsibility for your company and the products and services that you provide. Unfortunately, there are times where something can go wrong, leading to damage for third parties. In these cases, you as an entrepreneur can be held liable. For example, consider a product that malfunctions causing injury, or a customer slipping and hurting themselves in your store. Be aware of the potential pitfalls and get as much protection as you can. AVP insurance only covers personal, private liability, so look for professional liability insurance and business liability insurance to offer complete coverage for your business.

    Professional liability insurance for entrepreneurs

    Professional liability insurance is intended for people who work as independent professionals and provide advice or a service where there are risks of financial damage for the customer. An example of this is in professions such as lawyers, accountants, architects, and consultants. The insurance covers liability for errors made while performing the work.

    All about professional liability insurance →

    Liability as a self-employed person

    As a self-employed person you bear a certain responsibility that you do not have as an employee. This means that you can be held liable if you cause damage during the performance of your activities and are responsible for this. AVP insurance does not offer a solution in this case, because it concerns damage un a business context. A special liability insurance for self-employed people provides cover for situations in which you, as a professional, cause damage to others. An example of this is injuring people during work and the consequential damage as a result.

    Everything about liability as a self-employed person →

    Business liability insurance for entrepreneurs

    Business liability insurance is intended for companies and covers liability for damage caused during the performance of work. This could include damage to the property of third parties or personal injury during the performance of work.

    All about business liability insurance →

    Liability in bankruptcy

    Bankruptcy has far-reaching consequences for the company, employees, but also for creditors. A director of a company may be expected to manage the company properly and take reasonable measures to avoid bankruptcy. If, after bankruptcy, it turns out that the director has made mistakes, they may be held liable. This is called maladministration. It is advisable that you take out a good directors’ liability insurance.

    Directors’ liability

    Directors’ and officers’ liability relates to the liability of directors for debts of a company, among other things. Directors can be liable both to the company and to third parties, for example, where creditors have been damaged by the director.

    Terms and conditions

    General terms and conditions can play an important role in limiting liability as an entrepreneur. By means of general terms and conditions, an entrepreneur can exclude or limit certain liability risks. Always ask for help from a legal professional when drawing up general terms and conditions.

    8 Tips on How to Save on Liability Insurance

    woman checking her options to save money on the avpIt is possible for you to save money on your liability insurance, but it is important that you don’t expect miracles when attempting to do so.

    1. Find the right combination: AVP insurance is an affordable insurance option, with maximum protection based on just a few euro per month in some cases. This is often down to combination or package discounts that considers a few different elements of insurance cover that you are looking for, such as building or content insurance, or shopping around for the insurance policy that suits you best.

    2. Increase the deductible: With some insurers it is possible to voluntarily increase the deductible in exchange for a premium discount. With some insurers, the excess can be increased to more than 500 Euro. This provides a limited benefit of approximately 6 to 14 Euro per year. With a number of insurers, it is also possible to only increase the deductible for damage caused by the children.

    3. Wait for a discount: Switching insurers isn’t always a guarantee of a lower premium. Sometimes, if you wait another year you will end up with a cheaper rate with your existing insurer, as you are a loyal policyholder. Even though you might lose package discounts, this loyalty discount can more than make up for it.

    4. Save by keeping policy up to date: When your family composition changes, you should always inform the AVP insurer. This could be your children have grown up and left home, you have divorced, or no longer have a parent living with you. All of these things could result in a saving on the premium.

    5. Pay up front for a full year: With some insurers you might be offered a discount if you can pay the premium up front for the full year ahead, instead of monthly payments. This is often quite limited and usually does not exceed 1%, but if you can afford to do so it is a saving.

    6. Compare policies: Always research different policies, as there can sometimes be significant differences between different insurers, as well as the premiums on offer, the conditions, and coverage available. Cheaper insurance does generally mean less protection though, so find that balance.

    7. Only choose a higher cover if necessary: Higher coverage will most likely lead to a higher premium, so take the time to look at the details of the coverage and only choose a higher coverage if your personal situation demands it. Otherwise, choose coverage that suits you and might have a lower cost.

    8. Perform an annual check: Take the time every year to go over your policy and see that you’re getting out of it everything that you want. If you need to make changes you can then inform your insurer, or shop around for a cheaper deal and prevent unnecessary costs.

    What to pay attention to when taking out AVP

    Liability insurance policies can differ from person to person, which makes it so important that you read the fine print of the policy conditions and understand exactly what it is you are signing up to. For example, one policy might have a higher deductible than another, and the level of coverage might vary from policy to policy. Always take a good look at the policy detail to see what is actually covered by the insurance and choose a policy that covers an insured amount of 1.25 million Euro or more, as the costs can add up significantly. Another example is if you participate in a sport where others are at risk of injury (such as martial arts). In this case, it is advisable to have insurance that includes a sports clause, as many types of insurance would not have this added as standard.

    Cost of liability insurance

    If you don’t have AVP insurance this can result in high liability claims, but the price of the insurance itself must also be taken into consideration, though in comparison this price is a cost-effective one. The price tag of the final policy will depend on a few factors, such as the type of policy, the deductible, the personal circumstances of a person taking out the insurance, and the different prices between insurance companies, to name just a few.

    AVP insurers

    There are countless AVP insurance companies in the Netherlands, and each has its own policy conditions to be aware of. It is impossible to list them all here. There are similarities between many of them, but the differences are important to be aware of, as it could impact the type of policy you wish to take out, the price, and other conditions, including maximum coverage. You can find more about the pros and cons of the various liability insurers in the Netherlands.

    More information about AVP insurance companies →

    Save on liability insurance

    Before you take out AVP insurance, see what you can save on the premium. There are often several options for you to choose from. For example, a policyholder can increase the deductible, or combine different insurance policies to obtain a discount on a package deal. There is also the option to save money on your insurance after you have taken it out, by reporting changes to your details or by paying in advance for the full year ahead. Other money-saving techniques for insurance includes shopping around, and by switching to another insurance provider you might find you are saving significant amounts for similar coverage.

    Switching to another liability insurer

    There are many reasons why a person might want to switch to another liability insurance company. It could be that they are unhappy with the service they are currently experiencing, or that another provider offers similar coverage for a cheaper price. In most cases, you cannot switch to another insurance during the first year of taking out AVP insurance, although there are some who allow this. Check the terms and conditions when signing up to any insurance policy, including whether there are associated costs that you will pay should you switch, and a notice period for switching.

    Switching to a different liability insurance policy

    It is easy to switch to another liability insurer. You can start the process anytime but you are being held to the contract time of your current AVP insurance.

    There could be several reasons why you want to switch, but it is important to get the process right, as you do not want to be left either with no insurance or paying out for two policies overlapped for a short period of time.

    woman and man switching liability insurance

    Cancelling liability insurance

    You can now cancel your policy online, via the insurer’s website. This makes it much easier to switch insurer’s but if you need more help, you should contact the company by telephone to speak to a person. Some insurers do only allow cancellation via registered letter.

    Why switch liability insurance?

    There are many reasons why a person might want to switch insurer such as:

    • Cost is lower elsewhere

    • Better coverage

    • Dissatisfied with current insurer

    • A better package discount with a new insurer

    When to switch liability insurance?

    For most insurer’s, a contract term of one year applies to liability insurance policies. Once the contract is expired, you are free to switch to another insurer, with a notice period of one month in most cases. An exception to this is where there is a sudden increase to the premium or changes to conditions, which allows the insured to switch.

    Switch to collective liability insurance

    Collective liability insurance is of benefit to associations and authorities, such as sports associations, student groups, or collectives within a workplace. This often leads to a discount on the premium.

    Step-by-step guide to switching AVP insurer

    Some liability insurers offer a switching service, taking the hassle out of your hands and ensuring you don’t have double coverage or an uninsured period. Here is a step by step guide on how you can do it yourselves.

    1. Compare liability insurers

      1. By comparing different insurers you can find the right coverage for your specific situation – pay attention to the premium and the conditions as well.

    2. Apply for the new insurance

      Apply for the new policy, making sure you have all your personal details and current policy.

    3. Wait for approval

      The insurer will review and either accept or reject your application. This can take days or weeks depending on the insurer.

    4. Cancel the old insurance

      At this point, if you are accepted on the new policy, you should cancel the old, either online, or through a registered letter.

    Comparing liability insurance policies

    Claims can quickly become sky-high, making good liability insurance a cover that is much needed. Not every person runs the same type or level of risk though, so it is important to compare different policies and find the most suitable cover for your personal circumstances.

    Amount insured with a liability insurance policy

    Liability insurance always covers personal liability up to a certain amount. Personal liability also includes liability for damage caused by pets or children, for example. When comparing AVP insurance policies, it is especially important to check the amount up to which this personal liability is insured. Because damage claims can sometimes be high, especially in the case of personal injury, we recommend that you insure personal liability for at least 1.25 million Euro.

    Exclusions on the AVP

    There are some exclusions on AVP, where you are not covered by your policy. This includes:

    • Damage caused by motor vehicles (this requires third-party insurance)

    • Material damage caused to belongings of someone co-insured on the policy

    • Damaged caused intentionally (except for those under 14 years of age)

    • Damage caused under the influence of alcohol or drugs

    • Group liability

    • Damage to other people’s belongings when they have hired belongings from the insured person

    • Damage to items that the insures has unlawfully (items they have stolen)

    • Damage to items insured person has in professional sense (e.g., Work laptop)

    • Damage during paid work (voluntary work is covered)

    These are common exclusions to almost all AVP insurers. A difference is found with the liability for damage caused to a rented holiday home, which more insurers limit to fire and water damage.

    Everything about AVP exclusions →

    Additional coverage through the AVP insurance

    There are certain clauses that can be added for extra cover, such as:

    • Benevolence clause

    • Sports and games clause

    • Babysitter clause

    • Supervision clause

    Always ask your insurer for the specifics of such clauses to be added to your AVP.

    How to compare AVP insurance policies

    There are a few different factors that you should take into consideration when comparing different AVP insurance policies. These include:

    • Coverage amount

    • Premium

    • Own risk

    • Family coverage

    • Inclusion of pets

    • Coverage area

    • Volunteer coverage

    • Coverage for damage when renting or renting

    • Reputation of the insurance company

    • Possibility of optional covers

    • Additional benefits and discounts

    Although there are comparison sites that can help you quickly look at the main differences between different insurers, not all companies are includes on every comparison site, so take the time to look at different deals and coverage yourself too.

    AVP insurance companies

    Around 6 million Dutch people have AVP insurance. It is a popular type of insurance offered by almost every insurer, but there are differences between them. Some of the main AVP insurance policy providers are listed below:

    1. FBTO – the insured can choose an insured amount between 1.5 and 2.5 million Euro, covering adopted children, children living with an ex-partner, and children living elsewhere for full-time study.

    2. Univé – no deductible and worldwide coverage up to 2.5 million Euro as standard. Covers liability for damage with a number of motor vehicles such as, sailing boat, model car, and ride-on-mower.

    3. Alliance Direct – complete, worldwide AVP coverage up to 2.5 million Euro. Restrictions include damage during friendly services, damage to rented items, damage due to sports and games in normal play.

    4. AEGON – extensive coverage including children living away from home to study, damage caused by a pet, and costs of legal assistance in cases of a liability claim.

    5. ING – acting as an intermediary for Nationale Nederlanden, ING offers good switching assistance and great customer service. Coverage includes home contents, liability, and accident.

    6. Centraal Beheer – known for good customer service and assistance, with 24 hour assistance. Coverage between 1.5 and 2.5 million Euro, with some exceptions within the policy.

    7. Promovendum – low premiums for those in higher education, with coverage between 1.5 and 3 million Euro per event. Extensive coverage with optional co-insurance for your partner.

    8. Ditto – basic worldwide coverage to any person living with insured as a family member. Adult children studying away must reside in Europe.

    9. ASR Insurance – liability cover of between 1.25 and 2.5 million Euro. Coverage includes damage to babysitter, caused by pets, or children under the age of 14, and damage due to a crime caused by someone else.

    10. ANWB – known for its roadside assistance service, ANWB liability insurance covers up to 2.5 million Euro, worldwide for personal injury and material damage.

    Switching AVP insurer

    If you are not satisfied with your current AVP insurer, you should begin the process of switching to get better premium, coverage, and conditions.

    Switching to another AVP insurer →

    Frequently Asked Questions about liability insurance (AVP)

    Accidents can happen. If you accidentally cause damage to someone else or their property, you might be liable to pay significant costs. Below are some frequently asked questions regarding liability insurance (AVP).

    How much premium will I pay and how much is insured?

    The premium of a liability insurance (AVP) and the insured amount depend on the type of insurance you choose. Every insurer will set an amount and determine the premium based on a range of factors, such as family composition, type of insurance, and what you wish to insure. Those who live alone may pay a lower premium than a family. Insuring a higher amount often means a higher premium. Most insurers reimburse up to a total of 2.5 million Euro per event.

    Is there a deductible?

    It is not customary for private liability insurance (AVP) to have an excess.

    When can I claim liability insurance?

    An insured person can claim the AVP if they, their partner, or one of their children, inadvertently causes damage to (the belongings of) another person. The insurance covers the damage for private individuals if they are deemed liable for the incident.

    What about rented items?

    Liability insurance only provides coverage for property. You are not insured against damage to rented items. Check the policy detail with the insurer for exceptions and exclusions to check what you are covered for.

    What value applies when reimbursing items?

    In the event of damage, the insurer helps the other party to resolve the damage, reimbursing the current value of the items to the other party. This is the value the items held at the time of the damage, with insurers using depreciation lists to determine a fair and accurate reimbursement value.

    What does AVP mean?

    AVP is the abbreviation for ‘private liability insurance’, a policy that covers the liability of the insured. It concerns liability for damage caused by the insured, but also damage caused by their partner, children, or pets. AVP covers non-professional liability.

    Why do I need liability insurance?

    It is not uncommon for liability claims to run into high values of tens or hundreds of thousands of Euro, and this makes liability insurance a necessity. It is not mandatory, but it is advisable to take out this type of insurance.

    What is liability insurance?

    It covers liability, where the insured is deemed liable for an incident where compensation must be paid to the other party. There are different types of liability insurance, such as private liability insurance (AVP) and liability insurance for car drivers (WA insurance).

    What does liability insurance cost?

    The cost can change depending on a range of factors, such as the type of coverage you are looking for and your own personal and financial situation. A good AVP insurance policy that includes family cover could cost around 40-45 Euro per year, as an example.

    What is covered by liability insurance?

    In principle, liability insurance covers both fault liability (where the insured is at fault for the damage caused) and strict liability (where the insured is not at fault but it still liable – such as injury caused by a person’s dog).

    From what age do I need liability insurance?

    Children are generally covered by their parents’ AVP insurance, and in many cases, this will continue into adulthood if children are studying or still living at home. This is often possible for adults up to the age of 23-27 years old. Once you have moved out of home and are no longer co-insured on the AVP insurance your parents have, it is advisable to take out your own liability insurance.

    What is the cheapest AVP insurer?

    That's hard to say. After all, the premium depends on the family situation of the insured person and on any choices made. In addition, discounts can also play a role. Only by comparing liability insurance policies is it possible to find the cheapest policy.

    Is the insurer with the most comprehensive cover also the best?

    No. Many people do not need the most extensive coverage, while that is of course included in the premium. Non-sporters do not need coverage for sports and games. And if you don't have children, you certainly don't need an extensive babysitting clause. Therefore, always opt for a cover that fits the life situation.

    Is increasing the deductible a good idea?

    With most AVP insurers it is possible to voluntarily increase the deductible, but the Consumers' Association advises against this. The discount is often not higher than a few euros per year and therefore it is not really that interesting at all.

    Is the coverage area identical with all AVP insurers?

    No. Most AVP insurers offer worldwide coverage, but several exceptions have been included in the fine print. This is the case, for example, for children who live away from home and who are only insured in Europe. Europe does not always mean the European Union or the European continent. Intermediate solutions are possible depending on the definition used. In addition, the liability for holiday homes is often limited to foreign holiday homes. Whether Bonaire, St. Eustatius, the Netherlands Antilles, Aruba, Curaçao, St. Maarten and Saba are covered differs from insurer to insurer.

    When can I cancel my liability insurance?

    With some insurers, the liability insurance can be canceled daily, even in the first year. With other insurers, the insurance policy can only be canceled for the first time after one year and daily once that year has passed. Always view the policy conditions for more information.

    Can I only apply for my new insurance if my old insurance has been cancelled?

    No, you can apply for your new insurance before your old insurance has been cancelled. Make sure that you only make the final switch when your old insurance policy expires. Avoid uncovered periods and periods of double coverage.

    Can I cancel my old AVP insurance if I have not yet taken out a new insurance?

    Yes, you can cancel your old insurance policy before you have taken out a new insurance policy. It is wise to take out a new insurance policy as soon as possible. In addition, we recommend that you always wait for the final approval of the new insurance policy before canceling the old one. This way you avoid problems.

    Can I still use my old insurance during the switch?

    Yes, if your old insurance is still valid, you can still use this insurance. Once the old insurance expires and the new AVP insurance starts, you must report claims to the new insurer.

    Can I save by limiting AVP insurance coverage?

    The content of the policy is usually largely fixed, except for the maximum insured amount. With some insurers, the cover can be chosen more or less freely, often on the basis of a number of optional amounts. Sometimes the insured amount can be adjusted with a margin of up to 50%. In addition, considerable savings can often be made. Our research shows that the savings can amount to 25% if the sum insured is 50% lower. However, with many insurers, the insured amount is fixed in advance and adjustments and savings are therefore not possible.

    Are there any other differences between AVP Insurance policies?

    The main differences have to do with the extras or situations where there is no liability, but where the AVP insurer will still pay for the damage. This concerns, for example, sports and games clauses or supervision clauses. In addition, some insurers offer discounts through their network. For example, with a number of AVP insurers it is possible to get a discount on smoking cessation programs, which of course reduces the risk of causing fire damage.

    Does my child have to take out separate insurance?

    If the children still live at home, this is usually not necessary. Even when studying away from home, the AVP insurance will usually reimburse the damage and a separate AVP insurance is not necessary. Sometimes there are restrictions, and for example, it must be compulsory to study full-time or the child must study in Europe. If the AVP insurance does not provide coverage, the student can take out their own AVP insurance. It is often more interesting to switch to another AVP insurer that does provide cover.

    I cannot pay my premium, what do I do?

    Always contact the insurer. In the event of an unpaid premium, the insurer may immediately terminate all insurance policies stated on the policy. Then the insured is no longer covered. Discuss the situation with the insurer, clearly state the reason and clearly communicate when payment will follow.

    My family situation has changed, but I do not want to report this because I will have to pay more. Is that smart?

    If important changes are not reported, the insurer may immediately terminate the insurance. In exceptional cases, the insurer may not even accept the damage, but usually the insurer will only pay out in part. In any case, not reporting changes is not smart.