Liability Insurance: Austria Trend's Protection Measures

Austria has a robust insurance sector, with over 100 companies offering various products. The market is expected to grow at a CAGR of more than 4% between 2023 and 2027, with a gross written premium of EUR15.5 billion in 2022. The Austrian social security system is contribution-based, covering health, pension, and accident insurance for every individual. While health insurance is mandatory, there are other forms of insurance that are legally required, such as third-party car insurance and standard homeowner's insurance. Additionally, certain professionals, such as doctors and lawyers, are required by law to have professional liability insurance.

What types of liability insurance are available in Austria?

Liability insurance is a type of insurance where the insurer is obliged to compensate the policyholder for the benefit that they are required to pay to a third party as a result of an event occurring during the insurance period. This covers both in and out-of-court fees that arise from defending against a claim made by a third party, provided that the costs are commensurate with the circumstances.

There are several types of liability insurance available in Austria, including:

• Motor third-party liability insurance (MTPL): This is mandatory in Austria and covers vehicles. The minimum insured sum for passenger cars is €7.6 million, with €6.3 million set aside for personal injury and €1.3 million for property damage.
• Personal liability insurance: This is automatically included in car rentals in Austria and covers any costs incurred by third parties due to negligence in causing an accident.
• Public liability insurance: This is a compulsory form of cover that protects against claims by third parties for negligence, death, injury, loss, damage to property, and economic or financial loss.
• Professional liability insurance: This is designed to protect freelancers or self-employed persons who assume increased risk as a result of their professional activity. It is recommended for some professional groups and legally required for others, including doctors, lawyers, notaries, bookkeeping professions, and civil engineers.
• Errors and omissions insurance: This is a form of professional liability insurance for persons and companies whose oversight results in financial losses. This primarily concerns advisory or auditing professions.
• Industrial third-party insurance: This is recommended for enterprises and companies with multiple employees.
• Building and content insurance: This covers property and its contents against fire, water damage, and other types of damage, such as earthquakes, lightning, storms, explosions, burglary, and theft.

What does Austrian liability insurance typically cover?

Austrian liability insurance typically covers costs incurred from accidents, injuries, and damage to third parties. This includes compensation for personal suffering, treatment costs, and damage to property. For vehicles, Austrian law requires a minimum insured sum of EUR 7.6 million, with EUR 6.3 million set aside for personal injury and EUR 1.3 million for property damage.

Professional liability insurance is designed for freelancers and self-employed individuals, protecting them from claims for damages resulting from their professional activity. Errors and omissions insurance is a form of professional liability insurance for individuals and companies whose oversight results in financial losses. This type of insurance is common in advisory or auditing professions.

Home insurance in Austria typically includes civil liability coverage for accidents and injuries to third parties. This covers injuries or damage to third parties occurring in the home or caused by the property or pets.

How much does liability insurance cost in Austria?

The cost of liability insurance in Austria depends on the type of liability insurance required.

Private Liability Insurance

Private liability insurance in Austria costs from €20 to €40 per year, but extended liability insurance can cost from €90 per year or more.

Motor Third-Party Liability Insurance

As of January 2017, the legal minimum insured amount for passenger cars is €7.6 million, with €6.3 million set aside for personal injury and €1.3 million for property damage.

Professional Liability Insurance

Professional liability insurance is legally required for some self-employed healthcare and advisory professions, and recommended for some other professional groups. It can be taken out with almost all larger Austrian insurance providers.

Public Third-Party Liability Insurance

Public third-party liability insurance is required for businesses and covers damage or loss resulting from personal injury, property damage and resultant financial losses caused to a third party by the business's activity.

Errors and Omissions Insurance

Errors and omissions insurance is a form of professional liability insurance for persons and companies whose professional oversight results in real financial losses. This type of insurance is generally not for personal injuries or material damages.

Who are the main providers of liability insurance in Austria?

In Austria, insurance is governed and licensed by the Financial Market Authority, making it reasonably priced and easily accessible. The gross written premium of the Austrian general insurance market was EUR15.5 billion in 2022, with a projected compound annual growth rate (CAGR) of more than 4% for 2023-2027.

Professional liability insurance is legally required for some self-employed healthcare and advisory professions, including doctors, clinical and health psychologists, psychotherapists, lawyers, notaries, bookkeeping and accountancy professionals, and civil engineers. This type of insurance can be obtained from most large Austrian insurance providers, with many chambers and professional associations negotiating framework agreements with insurance providers.

For those seeking personal liability insurance, it is often included in homeowners or car insurance policies. However, additional insurance can be purchased to cover pets, travel, and home contents.

The top insurers in the Austrian general insurance market include Uniqa, Generali, Wiener Stadtische, Zurich, and Vienna Insurance. Uniqa is the market leader, offering a comprehensive range of insurance products, including leisure and work accident insurance.

How does Austrian liability insurance compare to that of other countries?

Austria's insurance market is governed and licensed by the Financial Market Authority, making insurance reasonably priced and accessible. Health insurance is a priority for the Austrian government, with 99% of the population covered.

In terms of liability insurance, there are a few key types: vehicle, professional, personal, and public third-party. Vehicle liability insurance is mandatory in Austria, with a minimum insured sum prescribed by law. This covers compensation claims arising from accidents, including personal injury and damage to property. Professional liability insurance is designed for freelancers and the self-employed and is legally required for certain professions. Personal liability insurance provides coverage for individuals and their dependents if they cause injury or damage to someone else's property. Finally, public third-party liability insurance is for businesses and protects against claims arising from business activities.

While I cannot provide a direct comparison to other countries, it seems that Austria has a comprehensive and accessible insurance system, with a range of mandatory and optional coverage options. The system appears to be well-regulated, with clear guidelines and procedures in place.

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