I am not really sure how you can know if there is a leak or not. There are symptoms though that you might want to check. Check to see if you smell oil or petrol in your machine and if it prominent.
Can a water pump failure cause damage to an engine? It seems there's a lot of issues with the water pumps with this model so I wanted to know if it can escalate to a bigger problem like engine failure.
Every time I use the steering wheel I feel like it's going to come off. Especially when I am at high speeds the wheel seems to be very very light.
Is this normal or is the steering wheel lose or something?
Have you already checked if the leak was coming from the pump and filter? You might also check the O-ring in the gas cap. It seems a lot of people are having problems with that cap recently...
The best way to deal with this is to get your car checked up by an authorized Porsche dealer. You may find the airbag light irritating but you might want to also consider that if an accident do happen that airbag might not work.