Firecrackers and rockets for New Year's Eve: What financial experts say about insurance and legal risks

Firecrackers and rockets for New Year's Eve: What financial experts say about insurance and legal risks

According to a report by www.express.de, the Federal Ministry of the Interior (BMI) points out that firecrackers and rockets may only be set off on New Year's Eve and New Year's Day without official approval. However, there are sensitive areas that are subject to special protection. Cities and municipalities can also set further time and location restrictions. Special prohibition zones for safety and noise protection reasons have been established in Düsseldorf, Cologne, Hamburg, Berlin and Munich, for example. These are usually located in the city center or around busy squares and venues. Firecrackers are generally prohibited in the immediate vicinity of churches, hospitals, children's and retirement homes, thatched or half-timbered houses and areas with large gatherings of people. Violations can result in severe fines of up to 50,000 euros or even imprisonment of up to five years, especially if people or things of particular value are intentionally endangered.

With regard to insurance, private liability insurance takes effect in the event of damage if other people are injured by the pyrotechnics. Private accident insurance is relevant if you suffer permanent damage yourself. Homeowners insurance pays in the event of a fire caused by misdirected rockets, while household contents insurance protects the interior furnishings. Motor vehicle insurance covers damage to the car caused by fire or the explosion of a firecracker, but only as part of partial comprehensive insurance.

Regarding the economic sector and the insurance industry, the increasing number of claims during New Year's Eve may lead to increased costs for insurance companies. This could lead to rising insurance premiums for individuals to cover the increased risks. In addition, cities and municipalities that establish additional prohibition zones could lead to a decrease in sales of fireworks in these areas, which could affect the sales of fireworks companies.