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Personal liability insurance is one of the most important types of insurance for individuals. The German Statute § 823 BGB regulates liability for damages:

„Any person, who willfully or negligently injures the life, body, health, freedom, property, or other right of another illegally is committed to compensate the other for the resulting damages.“

The extent of the liability is, as a rule, not limited. The person liable is at risk with all their assets.