What does “personal liability” coverage protect against?

Personal liability coverage is designed to protect individuals from claims made by other parties for bodily injury or property damage that the insured may be responsible for. This type of coverage is essential because it offers financial protection in situations where someone is injured on the insured's property or if the insured inadvertently causes damage to someone's belongings.

This coverage typically applies to a variety of scenarios, such as accidents that occur in a person's home or other locations where the insured may be held liable. Without personal liability coverage, the insured would be responsible for out-of-pocket costs associated with legal defense, settlements, or judgments, which can be significant and financially devastating.

The other options focus on different aspects of insurance coverage. The loss of personal property relates to property coverage, which protects against the risk of loss or damage to the insured's own belongings. Medical expenses for the insured cover health-related costs resulting from injuries the insured sustains, and auto accidents during work hours typically fall under auto insurance or workers' compensation coverage, depending on the circumstances. Each of these areas serves a different purpose within the broader spectrum of insurance protection.