Liability insurance is not compulsory in the Netherlands, except for motor vehicles and certain professions, but Dutch law makes you liable for damage you wrongfully cause to others without any fixed ceiling. A personal liability policy (aansprakelijkheidsverzekering voor particulieren, AVP) covers that risk for you and your household, including damage caused by your children and pets.
For businesses the equivalent is business liability insurance (bedrijfsaansprakelijkheidsverzekering), and the difference between that policy and professional indemnity insurance (beroepsaansprakelijkheidsverzekering) is where companies are most often caught out. The first covers injury to persons and damage to property, the second covers financial loss caused by professional errors. Below we explain what each policy covers, what it leaves out and how a claim is handled.
Why does liability insurance matter in the Netherlands?
Because under Dutch law you must compensate damage you cause to others by a wrongful act, and there is no general maximum to that liability. Without insurance, one accident can cost you far more than you can pay.
The basic rule is in Article 6:162 of the Dutch Civil Code (Burgerlijk Wetboek, BW): whoever commits a wrongful act (onrechtmatige daad) against another person that can be attributed to him or her must compensate the resulting damage. On top of that, the law makes you liable for others and for things in certain cases, even if you did nothing wrong yourself. Parents are liable for damage caused by their children under 14 (Article 6:169 BW), and the owner of an animal is liable for damage caused by it (Article 6:179 BW). The full texts are available on wetten.overheid.nl (Book 6 of the Dutch Civil Code).
Think of a child whose football smashes a neighbour’s conservatory window, or a cyclist who swerves and scratches a parked car. These everyday incidents can lead to costs of hundreds or thousands of euros. If someone is seriously injured, a claim for medical costs and lost income can run into millions. A court can reduce an award if full compensation would lead to clearly unacceptable results (Article 6:109 BW), but it takes into account whether you were insured, and you cannot count on a reduction.
Liability insurance only covers damage you cause to others. Damage to your own property or your own injuries fall under other policies, such as home contents insurance or health insurance.
Which types of liability insurance are there?
The main types are personal liability insurance for private life, business liability insurance for physical damage caused in the course of business, professional indemnity insurance for financial loss caused by professional errors, and directors’ and officers’ liability insurance for directors.
Which policy responds depends on the context in which the damage arose. A private incident falls under your AVP. Damage caused by your business activities falls under business liability or professional indemnity insurance. Personal claims against directors, for example in a bankruptcy, fall under a directors’ and officers’ (D&O) policy. Directors’ liability has its own rules, which we discuss in our article on the liability of directors in the Netherlands.
What does personal liability insurance (AVP) cover?
An AVP covers damage you and the members of your household cause to other people or their property in private life. It is not compulsory, but most households in the Netherlands have one.
A family policy usually covers:
- you and your partner or spouse living at the same address;
- your minor children, including adopted and foster children;
- adult children living at home or living away for full-time study;
- your pets, such as cats and dogs;
- domestic staff, such as a cleaner or babysitter, while working for you.
Insured amounts of one to a few million euros per incident are common, for a relatively low premium. A higher insured amount usually costs only slightly more and gives better protection against the rare but serious case of personal injury. The exact scope of cover is set out in the policy conditions (polisvoorwaarden), so always read them.
What does an AVP not cover?
An AVP is not an all-risks policy. The most common exclusions are:
- damage caused intentionally;
- damage caused with a motor vehicle, such as a car, motorcycle or moped, which requires separate compulsory motor insurance;
- damage caused in the course of your business or profession;
- damage to your own property;
- damage to items you have borrowed, rented or are looking after, which is often excluded or covered only up to a limited amount.
Are you personally liable for damage caused at work?
As an employee, usually not towards third parties. Under Article 6:170 BW your employer is liable for damage you cause to others in the course of your work, and you are only liable towards your employer for intent or deliberate recklessness (Article 7:661 BW).
That is why an employee does not normally need a separate business policy. Self-employed persons (zzp’ers) and business owners are in a different position: they are liable for their own mistakes and need business cover. An AVP never covers damage caused in the course of your own business.
Which insurance do businesses and self-employed professionals need?
Usually a business liability policy for physical damage and, for anyone who gives advice or provides professional services, a professional indemnity policy for financial loss. The two cover different risks and do not replace each other.
Business liability for injury and property damage
Business liability insurance (aansprakelijkheidsverzekering voor bedrijven, AVB) is the business counterpart of the AVP. It covers injury to persons and damage to property caused by your business activities, your employees or your products.
Examples: a client slips on a wet floor in your office and breaks an arm; a plumber knocks over an expensive vase in a client’s home; an employee of a catering company spills hot coffee on a guest. The policy covers the damage for which the business is liable, and usually also the costs of defending a claim. Many policies exclude damage to the work itself on which you are working, and damage to goods in your care, so check those clauses carefully.
Professional indemnity for financial loss
Professional indemnity insurance covers pure financial loss that a client suffers because of an error or negligent advice in the exercise of your profession. There is no physical damage; the loss is financial.
This cover matters for anyone who advises or provides specialised services. Think of an IT consultant whose flawed advice brings down a client’s online shop for a day, an accountant whose calculation error leads to a tax assessment with fines for the client, or a marketing agency whose campaign infringes someone’s copyright. For some professions this insurance is mandatory under professional rules, for example for lawyers and notaries, and financial service providers under the Financial Supervision Act (Wet op het financieel toezicht, Wft).
Contractual liability
Liability policies generally cover liability that follows from the law. Liability that you have taken on by contract beyond what the law imposes, for example in a broad indemnity clause or a penalty clause, is often excluded.
Check your contracts and general terms and conditions against your policy. Limit your liability in your terms where possible, for example to the amount the insurer pays out, and make sure the terms are properly made available to your clients. Otherwise you may have agreed to more than your insurer will cover. For the legal side of damages claims, see our article on claims for damages.
Directors’ and officers’ liability
Directors can be personally liable for mismanagement, for example towards the company under Article 2:9 BW or towards creditors in a bankruptcy under Article 2:248 BW (for a private limited company, a BV). A D&O policy covers such claims and the costs of defending them, but usually not in cases of intent or fraud. It is taken out by the company for its directors and supervisory board members.
How do you choose the right policy?
Look at three things: the insured amount, the deductible and the exclusions. Getting these right prevents you from being underinsured or paying for cover you do not need.
How much cover do you need?
The insured amount is the maximum the insurer pays per incident, sometimes also per year. For an AVP the difference in premium between a lower and a higher amount is usually small, while serious personal injury can lead to claims running into millions. For businesses, the right amount depends on the sector, the type of clients and the potential consequences of an error. A freelance graphic designer faces a different risk than a structural engineer. Clients sometimes require a minimum insured amount in their contracts.
The deductible
The deductible (eigen risico) is the part of each claim you pay yourself. A policy without a deductible has a higher premium but covers the claim from the first euro. A policy with a deductible has a lower premium, but you pay the first part of every claim. A higher deductible can make sense if you rarely expect small claims.
Where to buy a policy
You can buy directly from an insurer, compare policies on a comparison website or use an insurance broker. Buying directly is straightforward but limits you to one insurer’s products. A comparison website quickly shows prices and basic features but gives no personal advice. A broker can advise you on complex needs and help with claims, but may work with a limited panel of insurers and may charge a fee. Whichever route you choose, compare the policy conditions, not just the premium.
What should you do after an incident?
Make sure everyone is safe, record the facts and report the damage to your insurer quickly. Do not acknowledge liability yourself: most policy conditions prohibit this without the insurer’s consent.
A friendly apology is fine, but a statement such as “it was entirely my fault” can complicate the handling of the claim. It is up to the insurer to assess whether you are liable. Focus on the facts instead:
- Check whether anyone is injured and needs medical help.
- Take photos and videos of the damage, the location and relevant circumstances, such as a slippery floor or poor lighting.
- Write down the names and contact details of any witnesses.
- Exchange names, addresses and insurance details with the other party.
Reporting to your insurer
Report the incident to your insurer as soon as possible, usually through a claims line or online portal. You will normally need to complete a claim form (schadeformulier) with a factual account of what happened, the parties involved and the damage. Complete it accurately, using the information you collected. Reporting late or giving incorrect information can affect your cover, because the policy conditions usually require prompt notification and cooperation.
The insurer then assesses whether you are liable and whether the damage is covered. If so, it pays the injured party directly, minus any deductible, which you pay yourself. Suppose your dog jumps up at a visitor and a camera lens breaks, with a repair cost of 600 euros. With a deductible of 100 euros, you pay 100 euros and the insurer pays the remaining 500 euros. For small claims it can be cheaper not to involve your insurer at all.
If someone has been seriously injured, the injured party will usually be assisted by a personal injury specialist. Law & More does not handle personal injury claims; we refer those to a specialised personal injury lawyer.
What if the insurer refuses to pay?
Ask the insurer for a written explanation and lodge a complaint with its complaints department. If you are a consumer and the complaint is not resolved, you can go to the Financial Services Complaints Tribunal (Klachteninstituut Financiële Dienstverlening, Kifid), or to the court.
Insurers often refuse cover by relying on an exclusion or on a breach of the policy conditions, for example late notification. Such a refusal is not always justified. Under Article 7:941 BW, an insurer may only reduce or refuse payment for late notification if its reasonable interests have been harmed as a result. Exclusions must also be clear; unclear policy conditions are in principle interpreted in favour of the consumer. Businesses cannot use Kifid and must go to court if negotiations fail.
What should expats and new residents know?
A liability policy from your home country rarely provides adequate cover once you live in the Netherlands. Take out a Dutch policy as soon as you move.
Foreign policies are often designed for residents of that country and may exclude or limit cover for people who have moved abroad permanently. A Dutch policy is tailored to Dutch liability law, including the strict liability for children and animals. In the Netherlands it is generally assumed that someone who causes damage is insured, so relying on goodwill alone can lead to awkward situations with neighbours and friends.
Many insurers offer customer service, claims handling and online portals in English. Some can provide an English translation of the policy conditions. Remember that the Dutch version is usually the legally binding one. Some brokers specialise in advising internationals.
Key Dutch insurance terms
| Dutch term | English meaning | What it means for you |
|---|---|---|
| Aansprakelijkheidsverzekering | Liability insurance | Insurance for damage you cause to other people or their property. |
| Eigen risico | Deductible | The part of each claim you pay yourself. |
| Polisvoorwaarden | Policy conditions | The terms of the contract, including what is and is not covered. |
| Schadeformulier | Claim form | The form you complete to report an incident and make a claim. |
| Dekking | Cover | What the policy protects and up to which amount. |
In summary
- Under Dutch law you are liable for damage you wrongfully cause to others, with no fixed ceiling; parents and pet owners are also liable for their children and animals.
- Personal liability insurance (AVP) is not mandatory but covers your household in private life; motor vehicles require separate compulsory insurance.
- Businesses need business liability insurance for physical damage and, where they advise, professional indemnity insurance for financial loss.
- Contractual liability beyond the law and damage caused intentionally are usually not covered.
- After an incident, record the facts, report promptly and do not acknowledge liability without your insurer’s consent.
Frequently asked questions
Is liability insurance mandatory in the Netherlands?
Personal liability insurance (AVP) is not mandatory, although most households have it. Insurance is mandatory for motor vehicles under the Motor Insurance Liability Act (WAM), including mopeds. For some professions, such as lawyers, notaries and financial service providers, professional indemnity insurance is mandatory under their professional rules.
How much does personal liability insurance cost?
An AVP is usually one of the cheapest insurance policies available. The premium depends on the insurer, the insured amount, the composition of the household and whether you choose a deductible. Compare the policy conditions as well as the price.
Does personal liability insurance cover work-related damage?
No. An AVP only covers private life. As an employee you are usually not liable towards third parties for damage caused at work, because your employer is liable under Article 6:170 of the Dutch Civil Code. Self-employed persons and business owners need business liability or professional indemnity insurance.
Are my pets covered by my policy?
In most cases, yes. As the owner you are liable for damage caused by your animal under Article 6:179 of the Dutch Civil Code, and a standard AVP usually covers household pets. Check your policy for limits or exclusions, for example for certain breeds or for horses.
Law & More advises individuals and businesses on liability, coverage disputes with insurers and the limitation of liability in contracts and general terms and conditions. Unsure where you stand? Tell us about your situation. We will let you know your options within one working day.
How Law & More can help you with this is explained on our corporate lawyer page.
