What is the key distinction between personal liability and property damage liability?

The key distinction between personal liability and property damage liability lies in what each type of coverage addresses. Personal liability insurance primarily provides coverage for bodily injury claims, which means it protects the insured if they are found responsible for causing physical harm to another person. This can cover medical expenses, legal costs, and damages awarded in a lawsuit for bodily injuries resulting from incidents such as slip and fall accidents on the insured's property.

On the other hand, property damage liability focuses specifically on the damage that the insured may cause to someone else’s property. This can include situations where the insured accidentally breaks a neighbor's window or damages someone's vehicle. Thus, while both types of liability cover different aspects of claims that arise from the insured's actions, personal liability is uniquely designed to respond to bodily injury issues. This distinction underscores the importance of understanding the different types of coverage available in insurance policies.