Private liability insurance is indispensable for all individuals. Imagine what would happen if you, your child or even your dog caused an accident resulting in severe damage. Without liability insurance, you would have to cover unlimited costs for damage caused with your private present and future assets. In such cases, private liability insurance will provide protection from financial disaster. Coverage must be provided for all damage costs, such as material damage, medical treatment, compensation, pension for bereaved or resulting disability and compensation for salary loss. However, most claims are made for smaller cases of damage, often damage to rented homes, e.g. sink or carpet damage. (Keep in mind that liability insurance would cover the sink's current value, whereas household insurance would cover its original value.)
You will need additional liability insurance for certain risks; for example for hunting, extreme sports, horse riding on someone else's horse, keeping wild animals, etc. You will also need additional liability insurance for damage you cause to a car you may occasionally use, for paid services you provide on an avocational basis or if you are self-employed.
