Which types of damages are generally covered by liability insurance?

Liability insurance is designed to protect individuals and businesses from claims resulting from injuries and damages to other people or their property. The primary coverage provided by liability policies typically includes bodily injury and property damage.

Bodily injury refers to physical harm or injury to a person, which could occur through an accident or negligence, and it can encompass medical expenses, rehabilitation costs, and even compensation for pain and suffering. Property damage includes financial losses stemming from damage to someone else's property, whether it be through vehicle accidents, instances of negligence, or other situations leading to loss. These two components are essential aspects of liability insurance because they address the most common legal liabilities one may encounter in daily life or business operations.

Options related to emotional distress, punitive damages, loss of income, and legal fees do not align with the standard coverages of liability insurance. While emotional distress and punitive damages could potentially come into play in certain liability cases, they are not usually covered as direct damages under standard policies. Legal fees may be covered in some liability policies, but generally, personal liability insurance primarily focuses on bodily injury and property damage to shield the insured from substantial financial losses due to claims.