Bodily Injury Liability is a type of insurance coverage that is typically a mandatory component of an auto insurance policy in most states. This coverage is designed to protect the policyholder from financial loss in the event they are found legally responsible for causing physical harm to another person in an automobile accident. Bodily Injury Liability insurance covers the costs associated with the injured party’s medical expenses, loss of income, pain and suffering, and any legal fees that may arise from a lawsuit. The coverage extends to injuries caused by the policyholder while operating their vehicle, as well as by other drivers covered under the same policy.
The policy limits for Bodily Injury Liability insurance are usually expressed as two separate numbers. The first number represents the maximum amount the insurance company will pay for a single individual’s injuries per accident, and the second number signifies the total amount the insurance will cover for all injuries sustained by multiple people in the same accident. It is important to note that Bodily Injury Liability does not cover the policyholder’s own injuries or damage to their vehicle; it is strictly for the benefit of the other parties involved in the accident. Policyholders must consider purchasing additional coverage, such as Personal Injury Protection or Medical Payments coverage, to address their own potential injury expenses.