Personal Injury Liability

What Does Personal Injury Liability Mean?

Personal injury liability refers to a situation where an individual is held responsible for causing physical harm to another person. Consequently, the injured party may file a lawsuit seeking compensation for damages, including medical expenses, lost wages resulting from the injury, and emotional distress caused by pain and suffering. It is important to note that personal injury liability pertains to physical harm inflicted on a person, not damage to their property.

Insuranceopedia Explains Personal Injury Liability

Many types of insurance policies provide coverage for personal injury liability. For instance, an auto insurance policy might cover accidents where the policyholder injures another person, while a homeowner’s policy could cover injuries occurring on the policyholder’s property, such as a visitor tripping over a crack in the driveway. How much protection a policy actually provides depends on the coverage limits chosen, which is why it helps to look at how much liability insurance you need before settling on a state minimum.

Depending on the policy, the insurance company may cover the cost of settling the lawsuit as well as legal expenses. However, coverage limits apply, and certain exclusions exist, such as injuries caused while engaging in illegal activities. The amount of bodily injury coverage built into a home policy varies by insurer, so it’s worth comparing what different top homeowners insurance companies include in their standard packages.