Improper Handling: When does the Insurance Pay?

In principle, you are entitled to compensation if a third person damages your belongings. The same applies the other way around: if you hit the shelf with the porcelain cups in the department store with your bag, you have to pay for the damage. Therefore, you should definitely take out private liability insurance. In such a case, the company will cover the costs incurred. In the event of an incident with your car, the motor vehicle liability insurance would step in.


Improper Handling: When does the Insurance Pay?

But does your insurance also pay if you caused the damage through improper handling?


Unfortunately, there is no simple answer, because it depends on the clauses in your insurance contract. Normally, private liability insurance also pays for damage caused by gross negligence. You can find out here whether Improper Handling is also included. We will explain to you how “improper” is defined and what the consequences can be if you damage borrowed items.


When does one speak of improper handling?

According to a generally accepted definition, Improper Handling is the use of a thing that goes beyond the intended use. A complete misappropriation also falls under the term, which can be of great importance in insurance law. Because if a material defect occurs as a result of incorrect use, not every insurance company will step in.


Example: You bought a new motorized bicycle and the battery is no longer working? If the seller can prove that the defect only arose after your contract was concluded, the statutory warranty does not apply. For example, if you accidentally connected the battery to the wrong charging cable, your chances of a refund are rather slim.


If you cannot take recourse against the seller of your bike, you can contact your insurance company. But will you also get your money if you use it improperly if you haven't taken out an e-bike value guarantee for self-inflicted damage?


Note: Whether improper use has occurred will be decided in court disputes on a case-by-case basis. The line is often difficult to draw. For example, are you only allowed to shred files and papers in a document shredder? Or do you have to switch from your bike to the bus when it's icy?


Does the insurance pay for improper handling?

But there is a gray area, which includes gross negligence. Basically, the law understands negligence as avoidable misconduct, the consequences of which you could have foreseen. People are expected to be aware of certain circumstances. If you disregard this duty of care to a particularly high degree, you are acting with gross negligence. It is always assumed that you could have avoided the consequences of the damage with the simplest of considerations and a little awareness.


You should therefore avoid gross negligence, but unfortunately this often does not work as one would wish. Because it comes up again and again and in different ways. One of these “types” is Improper Handling of an item. Ultimately, it depends on your insurance contract whether you will be compensated for the damage that has occurred. Most insurance companies used to only cover minor negligence by default. In the meantime, however, more and more providers are also including gross negligence in their scope of protection. So ideally read your contract offer carefully, because in individual cases you will be held partly to blame and the amount paid out will be reduced.


Does the insurance pay for improper handling

Another example

Do you know what to look for in a bike rack on the car? You planted it correctly and it still fell off? Then it's not your fault, your insurance company will pay for the repairs. However, if you did not attach it correctly according to the instructions, i.e. treated it improperly, it depends on your contract. You may not get any compensation. Also make sure that your bike lights are securely attached!


Incidentally, the almost identical rules for improper treatment also apply to your motor vehicle liability insurance.


Note: Although many insurers now pay for mishandling, they usually specifically exclude certain types of behavior. They include, among other things, grossly negligent behavior due to alcohol and drug consumption.


Improper Handling

Bicycle, Car and Co: What about improper handling of borrowed items?

Ideally, you have taken out inexpensive bicycle insurance for your own set of wheels. Even better if you have even thought of a value guarantee or fully comprehensive insurance for the bike, which also covers self-inflicted fall damage.


But what if you borrow the bike from your neighbors on vacation and damage it through improper use? This can happen, for example, if you don't know how to change gears. If you press the wrong buttons on the bike street, this can block the system. You may also overlook special traffic signs for cyclists or park your bike where bicycle parking is prohibited. This is not necessarily improper, but it is grossly negligent or even intent.


In the case of borrowed items, liability insurance is often not fair. Again, be sure to read the fine print in your contract. Insurance companies often rate a loan not only as a temporary change of ownership, but also evaluate the loaned object as the user's property. This means that your neighbor’s bike would be yours at the moment the damage occurred and your liability policy would therefore no longer cover it. Because this basically only covers damage that you cause to third parties and not your own.


In the case of loaned items, insurance companies often exclude Improper Handling as well as wear and tear or signs of wear and tear, also expressly in the contract.


But all is not lost. You can always discuss with your insurer in advance whether he will include a corresponding clause in your contract. This means that you are also insured via your liability for Improper Handling of borrowed items. As a rule, however, you have to reckon with a higher premium for this cover extension.


By the way: If you lend your car to friends, you are liable and not them for damage caused by improper handling. Whether your car insurance will cover the repair costs again depends on your individual contract clauses. With comprehensive insurance you are usually on the safe side.


Expert tip: Never take the company laptop home with you. If you damage it through Improper Handling, you will have no luck with your insurance. Objects provided by the employer are also treated as your property.

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