I am a German person having lived in the US and Canada for some time. And for physical safety interesting observations are that German playgrounds would probably be considered too harmful to get approval in the US, whereas electricity / wiring in houses and especially the 110 V power outlets seem really neglectful to my German eyes, like an accident waiting to happen.

But, German kids survive German playgrounds and American children are not all electrocuted by 110V power outlets.

Another interesting angle to look at this is the legal system. When I first came to the US I was really astonished to see TV ads not only for attorneys, but also for attorneys looking for participants in class-action law suits. So from an economical perspective, civil live can be 'mined' for cases worth pursuing by the attorneyship. I am not ruling out that Germany might have examples with similar dynamics but definitely its not as strong, the compensation payments lower and the possibilities for an attorney to make a huge profit from a case much lower. I think case-law might also make it easier for new classes of 'harm' to surface in courts. After a couple of of occasions, you have precedents whereas in a country with civil law you might have courts refuse a liability if there was no basis for it in the civil law.

Overall, I do think that the notion of psychological harm shouldn't be neglected. Its easy to ridicule it citing cases like "Statue in underpants". Institutions would do best I think, if they established internal processes that would resolve problems gracefully and stop harm early on before having it escalated to the courts.