For example, Helen and Ben are on the trip of a lifetime and staying in a hostel in Brooklyn, New York. One night, Ben decides to use the communal barbecue to cook up a feast. He isn’t too sure how to get the gas working and mistakenly causes the cylinder to catch fire and damage the hostel’s communal area.
The damage costs more than the bond he and Helen put down when they initially checked in, and the hostel demands the pair pay for the damage they caused. In this case, personal liability cover in their travel insurance policy could help Ben and Helen cover these costs.
For example, George and Ivan are on a pub crawl in London. After one too many drinks, a fight breaks out at a bar and George ends up hitting another man in the face. The man ends up in the hospital and requires surgery.
Because George deliberately inflicted harm on another person, which is illegal, this is an example where a provider wouldn’t pay for George’s personal liability insurance claim.
If you find yourself in a tricky situation overseas and need to make a claim, there are several steps you need to follow. It’s important that you don’t admit fault or promise to make payment without talking to your insurer first, as this could impact your claim.
No, personal liability cover isn’t compulsory when you go on holiday. Keep in mind though that if you do cause damage to property or harm another person overseas and aren’t insured, you’ll be required to pay for any legal fees or damages out of your own pocket (which can easily reach into the thousands).
However, some countries (such as Cuba, the United Arab Emirates and Turkey) will require you to have travel insurance to enter, while it may be a requirement on some visas such as working holiday visas. It may also be required for activities such as cruising. Always check the requirements before your holiday.
You never know what will happen on holiday, and while it’s essential to cover yourself for accidents, illness and loss, it’s also important to have adequate cover in case you become legally liable to pay compensation to someone else.
Think of it this way: if a legal claim was made against you because you injured someone or destroyed their property, would you be able to pay for your legal expenses? Keep in mind that these costs can sometimes set you back hundreds of thousands of dollars – depending on the seriousness of the incident. Travel insurance can help cover some of these costs.
While many travel insurance policies do include some cover for public liability claims, it’s important to remember that they might only provide cover up to a certain limit.
For example, you may choose to take out a basic policy that offers a small amount of coverage for personal liability claims. If you caused damage or harm that exceeded this limit, you would need to cover the rest of the cost out of your own pocket.
Higher levels of cover come with greater amounts of personal liability coverage.
Always read the PDS or ask your provider about the extent of our coverage so that you can travel with peace of mind.
Because most travel insurance policies that cover personal liability claims don’t cover car accidents, you may be wondering what kind of protection you can get overseas if you’re involved in an accident.
In most countries, when you hire a vehicle, the hire car company is responsible for the vehicle insurance. However, most hire car agreements will require you to pay a car hire excess if the vehicle is damaged.
Car hire excess is an amount a hire car company charges you if your rental car is stolen, damaged or involved in an accident and can be covered by comprehensive travel insurance policies.
However, if you injure another person or damage their property while driving a rental car, travel insurance won’t be able to provide any cover.