What Does Liability Insurance Mean?
Property and Bodily Injury Coverages
- Liability insurance policies respond when you or a family member are sued because of damaged property or bodily injury. Property damage can be as simple as a baseball thrown through a neighbor's window or as complex as sparks from an outdoor barbecue setting a house on fire. Bodily injury claims can occur as the result of an injury in a swimming pool or someone slipping on a patch of ice on a front walkway.
- Personal injury coverage responds when a person is sued because he may have damaged the personal character, reputation or position in the community of a third party. There are two principle types of personal injury claims. Libel suits arise out of something that was allegedly written, while slander suits arise over something that has been spoken.
- The cost to defend against a lawsuit can be daunting, easily costing tens of thousands of dollars in lawyer fees and court expenses. Most liability insurance policies include the cost to defend the individual as well as the cost of any settlement or court award.