Insurance that pays for bodily injury and property damage you cause to others. In auto insurance, liability coverage is required in almost every state. It does not cover your own injuries or vehicle damage — you need collision and comprehensive coverage for that.
Related Terms
Bodily Injury Liability
Auto insurance coverage that pays for injuries you cause to other people in an accident where you are at fault. It covers medical bills, lost wages, pain and suffering, and legal defense costs. Most states require minimum bodily injury liability coverage.
Property Damage Liability
Auto insurance coverage that pays for damage you cause to another person's property in an at-fault accident, including their vehicle, fence, building, or other structures. Most states require minimum property damage liability coverage.
General Liability Insurance
A broad form of business insurance that covers claims of bodily injury, property damage, and personal injury arising from your business operations or premises. It protects against lawsuits from customers, vendors, or other third parties and is often required by contracts and leases.