Anyone who causes damage to persons or companies and their property through a lack of caution or carelessness must pay for it in full. This does not only affect the odd red wine stain on an expensive tablecloth, but also accidents where people are actually injured. The injured party has a legal claim for compensation against the person causing the damage. In the worst case, the party causing the damage is liable with all of its personal assets if they have no insurance protection.
As a consequence, a personal liability insurance is a must: in the case of claims for damages, it not only examines the damage but also protects against unjustified claims. In the event of a legal dispute, the insurer will conduct the legal proceedings and bear the costs.