What does 'bodily injury liability' cover?

Bodily injury liability specifically covers claims made against an insured for physical injuries inflicted upon others as a result of the insured's negligent actions. This type of coverage is intended to protect the insured from financial responsibilities when they are held legally liable for causing injury to someone else, such as in a car accident or a premises liability scenario. It ensures that the insured can cover the medical expenses, rehabilitation costs, and any potential lost wages of the injured party arising from the incident.

While defense costs related to legal claims can be associated with bodily injury liability, they are not the focal point of this specific coverage. Other options, such as claims for property damage or health insurance for the insured, fall outside the scope of bodily injury liability, which is strictly concerned with injuries to others. Hence, the correct understanding of bodily injury liability focuses on the obligation to compensate for physical injuries to third parties resulting from the insured's actions.