The basic rule is: Whoever causes damage to others (persons or companies) through carelessness or recklessness must pay the full amount. This does not only affect the red wine stain on the expensive tablecloth, but also accidents in which people are injured. If damage is caused, the injured party has a legal claim against the person causing the damage for payment of appropriate compensation. Thus, if a private person or a company inflicts damage on another person or a third party object, compensation must be paid. In the worst case, the party causing the damage is liable with all of its personal assets. Without insurance cover, this can mean financial ruin. For this reason alone, private liability insurance is a must. It applies to the private sector and insures personal injury, property damage and financial losses. In the event of claims for damages, the insurer not only checks and pays for the damage, but also protects against unjustified claims. In the event of a legal dispute, the insurer will conduct the proceedings and bear the costs.