In the Netherlands, most people have liability insurance (wettelijke aansprakelijkheidsverzekering). This insurance will cover claims from third parties for damages up to a certain amount (up to 2.5 million euros, in some cases). Liability insurance only costs a few euros per month. It is possible to include your family members in your policy.
This insurance is not mandatory. It is, however, advisable to include third-party liability insurance in your monthly costs, since unintended damage can easily occur. Additionally, since it is very common in the Netherlands, other people may automatically claim damages if they are affected by your actions, expecting that your insurance will cover it.
Note that some liabilities are excluded. For example, damages incurred or inflicted while under the influence of drugs or alcohol are not covered by liability insurance. Also, the liabilities associated with car ownership are not covered by this form of insurance. Car owners are required to have a separate third-party liability insurance to cover any damages associated with their car. This form of car insurance (autoverzekering) is mandatory in the Netherlands. Read more about car insurance if you own a car in the Netherlands or are considering buying one.