Private liability insurance
In one sentence
The insurance that pays damage you cause to others — and contests unfounded claims.
What it changes for you
It is not compulsory, unless a landlord requires it, but its absence exposes your assets without limit: in Swiss law, liability is not capped at what you own. Its second function is less known and worth as much: the insurer defends your interests and rejects unfounded claims, sparing you a lawsuit at your own expense.