Which types of damages are commonly covered under liability insurance?

Liability insurance is designed to protect the insured from claims made by others for damages for which the insured is legally responsible. The correct choice highlights the primary types of damages that liability insurance typically covers: bodily injury, property damage, and legal defense costs.

Bodily injury refers to physical harm suffered by another person due to the insured's actions or negligence. Property damage encompasses any harm to someone else's property that occurs as a result of the insured's activities. Additionally, liability insurance often includes coverage for legal defense costs—these can be substantial in cases where a lawsuit is brought against the insured.

The other choices do not accurately depict the scope of liability insurance coverage. Loss of income and emotional distress claims, while significant, are typically covered under different types of insurance or are not directly associated with liability insurance claims. Personal property theft and vandalism generally fall under homeowners or renters insurance rather than liability coverage. Lastly, while medical expenses for injuries can be part of liability claims, focusing solely on medical expenses does not encompass the full range of damages for which liability insurance provides protection.