exali Glossary
Your encyclopedia of technical terms used in the insurance industry
The insurance industry is full of technical terms—from insurance policies and obligations to recourse claims. To help you keep track of everything, the exali glossary explains the main insurance terms in a simple, understandable, and practical way.
In the exali glossary, you will find not only definitions, but also practical examples, legal information, and references to the appropriate insurance coverage. This way, you always know where the risks lie—and how to protect yourself against them.
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Property Damage
Property damage occurs when someone else's physical property is damaged, destroyed, or rendered unusable. The loss of property, especially money and monetary symbols, is also referred to as property damage. It is one of the three classic types of liability damage, alongside personal injury and financial loss.
Typical examples of property damage
- An employee knocks a laptop off a table at a customer's premises.
- A cleaner accidentally damages expensive equipment.
- An electrician causes fire damage during installation.
- A camera or drone falls and damages someone else's property.
As a rule, property damage occurs when a material object belonging to a third party is damaged by an action (or omission).
Who is liable for property damage?
If a company or self-employed person causes property damage to a third party, they may be liable for damages under Section 823 of the German Civil Code (BGB) – regardless of whether the damage was caused intentionally or through negligence.
The risk of property damage is particularly high when working on site at a customer's premises or on projects involving third-party equipment.
Coverage with exali
exali's business liability insurance protects you against the financial consequences of property damage – whether caused while working on site or due to a professional oversight. It is available from exali as a modular add-on to professional liability insurance.
The insurance covers:
- Checking whether and to what extent liability applies
- Payment of damages in the event of justified claims
- Defense against unjustified claims (passive legal protection)
Term: Property Damage
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