Personal liability in travel insurance

What is personal liability in travel insurance?

Personal liability travel insurance covers third-party insurance claims. In other words, it pays for the cost of damages, loss or injury to someone or their property that you or a member of your travelling party is personally responsible for causing. If you get into trouble while you're overseas, it can help out with the associated legal costs.

It is typically included in all travel insurance policies, even basic medical-only options.

What does travel insurance personal liability cover?

• The death and/or bodily injury of another person.
• Physical loss of or damage to another person's property, caused by an accident (intentional harm or damage is not covered).
• Legal expenses for settling, defending or acting on your behalf.

What personal liability insurance won’t cover you for

While most insurance policies offer similar cover, there are differences in what each insurer will and won’t cover. When it comes to personal liability, most insurance companies won’t cover claims in the following situations:

• Losses to you or your travelling party. Injuries or property damage caused by you to you or your travelling party won’t be covered.
• Losses involving cars and other vehicles. Injuries or damage from the use, ownership or custody of a mechanical, aerial or water-propelled vehicle won’t be covered.
• Work and profession cases. Injury, loss or damage that relates to your profession or personal business won’t be covered.
• Unlawful acts. You won’t be covered if the injury, damage or loss was caused by an illegal act.
• Sexually transmitted diseases. Communicable diseases transmitted by you won’t be covered.
• Non-monetary claims. Claims in any form other than monetary compensation are not included.
• Intended conduct. You won’t be covered if third-party losses occur because you are wilfully neglectful and intend to cause harm or damage.

Personal travel liability insurance exclusions for any loss, damage or expenses are not limited to this list. It’s imperative that you read your insurance policy carefully before travelling and before making a claim with your insurance provider.

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Frequently asked questions

• What is the excess I need to pay for a personal liability claim

  Most travel insurance policies include an excess for personal liability claims. This is the initial amount you must pay towards a claim before your insurer contributes. The specific excess amount will be detailed in your policy documents and can vary between providers.

• Does personal liability cover accidental damage to my hotel room or holiday rental

  Yes, personal liability can cover you if you accidentally damage a hotel room, an Airbnb, or other holiday rental property belonging to a third party. This would typically include accidental damage to fixtures, furniture, or other property within your accommodation. However, it does not cover intentional damage or wear and tear.

• Does my personal liability cover extend to actions by my children or dependents

  Generally, yes. Your travel insurance personal liability coverage will extend to claims arising from accidental injury or damage caused by your accompanying children or dependents who are listed on your policy. It is always wise to confirm the specifics for dependents in your policy documents.

• What should I do immediately if I am involved in an incident potentially leading to a personal liability claim

  If you are involved in an incident that could result in a personal liability claim, you should contact your insurer as soon as possible. Do not admit fault or make any offers of payment to the third party. You should also gather any relevant details such as witness contacts, incident reports, and photographic evidence.

• What happens if the personal liability claim against me exceeds my policy's maximum cover

  Your personal liability cover has a maximum limit, typically reaching several million dollars. If a claim against you exceeds this amount, you would generally be responsible for paying any costs beyond your policy's stated limit. This highlights the importance of understanding your policy's coverage ceiling.

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 570 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living

Co-written by

Jessica Prasida

Travel Insurance Expert

Jessica Prasida brings a decade of experience in the travel industry, including over four years as a travel agent and branch manager at STA Travel. She holds a Bachelor of Business and a Master of Marketing from the University of Technology, Sydney, as well as a Tier 1 General Insurance qualification that complies with ASIC guidelines. An avid traveller herself, Jessica combines her professional expertise with a passion for ensuring safe and enjoyable journeys for all travellers. Jessica was a Travel Insurance Publisher at Finder from 2019 to 2024. See full bio