Personal Injury Vs. Personal Liability Coverage – What’s the Difference?

When it comes to insurance, understanding the nuances between different types of coverage is crucial. Two commonly confused terms are personal injury coverage and personal liability coverage. While they may sound similar, they serve distinct purposes and cover different scenarios.

Personal Injury Coverage

Personal injury coverage typically refers to insurance products providing financial protection against nonphysical harm caused to an individual, such as the following:

• Slander
• Libel
• Invasion of privacy
• Copyright infringement
• Wrongful imprisonment
• Wrongful eviction

If someone sues you for making defamatory remarks that damage their reputation or conducting actions that cause emotional or financial distress, personal injury coverage may help cover legal fees, settlements and other related costs.

Personal Liability Coverage

On the other hand, personal liability coverage can provide financial aid if you are found legally responsible for causing bodily injury or property damage to someone else. Consider the following real-world scenarios:

• Bodily injury—A guest slips and falls in your home or your dog bites someone while on a walk.
• Property damage—You accidentally start a fire that spreads to a neighbor’s property or your child hits a baseball through someone else’s window.

In the aforementioned scenarios, personal liability coverage could help cover the costs associated with the lawsuit, including legal fees and any awarded damages. Therefore, this type of coverage is essential for safeguarding your financial assets against claims of physical harm or property damage that you may inadvertently cause.

Key Differences

The primary difference between the two is in the nature of the harm covered. While personal injury coverage typically can assist with nonphysical incidents, such as defamation, personal liability coverage focuses more on incidents with tangible results, such as bodily harm and property damage.

We’re Here to Help

At DRD Insurance Agency, we’ll work with you to help you understand various coverage options and secure the right policies. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.