Fault Liability (Verschuldenshaftung)

Concept

Fault liability is the dominant liability rule of general civil law, under which a tortfeasor is obliged to compensate a victim only if the causing of the loss can be attributed to them as fault – whether intentional or negligent. The injured party generally bears the burden of proving unlawfulness, fault, loss, and causation, although in certain situations (e.g. breach of contract, liability for the acts of auxiliaries) the burden of proof shifts to the tortfeasor’s disadvantage.

Distinction from causal liability

Fault liability is contrasted with causal (strict) liability, under which liability attaches regardless of individual fault, based solely on a statutorily defined causal link (e.g. operating a hazardous installation, keeper’s liability for motor vehicles). The vast majority of everyday losses – for instance in personal and commercial general liability – are nevertheless still assessed under fault-liability principles, so that establishing negligence or intent remains the central point of dispute in claims handling.

Relevance for liability insurance

Because fault liability is the rule and causal liability the statutorily defined exception, assessing the degree of fault (slight or gross negligence, intent) is central to coverage under liability insurance: losses caused intentionally are generally excluded from cover, while gross negligence may lead to benefit reductions depending on the policy and the applicable jurisdiction.