Index

1. What Is Personal Liability Coverage?
2. What Is Personal Injury Coverage?
3. Is It Necessary to Have Both?
4. Benefits to Having Both
5. Limitations & Exclusions

When discussing insurance and legal matters, the terms “personal injury” and “personal liability” often come up. While they may sound similar, they refer to distinct concepts with unique implications when you are purchasing insurance coverage. Knowing the difference between personal injury and personal liability is helpful for understanding insurance policies and ensuring proper protection.

Personal injury attorneys, including those of us at Chandler|Conway, often refer to “personal injury claims” when referring to various physical injury claims, such as car accident injury claims or construction accident injury claims; however, when you are purchasing insurance “personal liability” or “bodily injury liability” insurance is the coverage that will protect you in the situation where someone is physically injured as a result of your actions.

This guide will explain these terms, explore their coverage types, and help you determine whether you need both.

Visit our Personal Injury Law page to learn more about personal injury law and how it differs from personal liability.

What Is Personal Liability Coverage?

Personal liability coverage is a type of insurance that protects you financially if you are held legally responsible for causing injury to another person or damage to their property. It is typically included in homeowners, renters, and umbrella insurance policies.

Key Features of Personal Liability Coverage

1. Bodily Injury: Covers medical expenses and related costs if someone is injured on your property or as a result of your actions. For example, if a visitor slips and falls in your home, personal liability insurance can cover their medical bills.
2. Property Damage: Provides compensation if you accidentally damage someone else’s property. For instance, if your child breaks a neighbor’s window while playing ball, this coverage would help pay for repairs.
3. Legal Costs: Includes legal defense and court costs if you are sued for negligence. This can be particularly valuable as legal expenses can quickly add up.

Common Examples of Personal Liability Claims

• A guest tripping over loose carpet in your home
• Your dog biting a passerby
• Accidentally causing damage to a neighbor’s fence while landscaping
• Accidentally hitting someone with a golf ball on the golf course

What Is Personal Injury Coverage?

Personal injury coverage typically relates to harm caused by non-physical acts, such as defamation, slander, libel, or invasion of privacy. In insurance terms, it can also refer to coverage for injuries to yourself or passengers in an auto insurance context, depending on the policy.

Key Features of Personal Injury Coverage

1. Defamation Protection: Covers legal costs and damages if you are accused of slander or libel. For instance, if a comment you make online leads to a lawsuit, this coverage might provide coverage.
2. Emotional Distress and Privacy Claims: Protects against claims of emotional harm or privacy violations, such as unauthorized sharing of private information.
3. Auto Insurance Context: In some cases, personal injury protection or medical payments coverage (PIP or Medpay) is part of an auto insurance policy. Medpay covers medical expenses for you and your passengers after an accident, regardless of fault. Many homeowners policies also contain some form of no-fault medical payments coverage.

Common Examples of Personal Injury Claims

• A lawsuit for posting defamatory comments on social media.
• Being accused of invading someone’s privacy by disclosing confidential information.
• Medical expenses covered under Medpay after a car accident.

Is It Necessary to Have Both?

The short answer is, yes; however, how insured you are is a personal decision, and to determine whether you need both types of coverage, consider the following:

Lifestyle & Activities

Personal liability coverage is typically essential regardless of your lifestyle. Accidents happen, and if you are wanting protection outside of your auto insurance, you will want some form of personal liability insurance. If you are active on social media or publish content online, personal injury coverage for defamation risks may be advisable.

Property Ownership

Homeowners and renters benefit from personal liability coverage to protect against negligent acts that do not stem from a car accident, such as accidents on their property. Landlords may also need personal injury coverage for claims like wrongful eviction.

Driving Habits

If you drive regularly, medical payments coverage (Medpay) under an auto policy is a nice supplement to the usual mandatory liability and uninsured/underinsured motorist coverages contained within your auto policy. Medpay can cover medical expenses after an accident regardless of fault, thus helping with health insurance co-pays and deductibles.

Financial Assets

If you have significant assets, an umbrella insurance policy can extend both personal liability and personal injury protection. Umbrella policies are usually relatively inexpensive for the peace of mind they provide, and more people should consider having them.

Benefits of Having Personal Injury & Liability Coverage

Having both personal injury and personal liability coverage provides comprehensive protection.

Here’s why:

1. Broader Coverage: Each type addresses different risks, ensuring that gaps are minimized
2. Financial Security: Both coverages can help mitigate the financial impact of lawsuits, medical bills, and other expenses
3. Peace of Mind: Knowing you are protected against a wide range of scenarios can reduce stress and uncertainty

Having both personal injury and liability insurance coverage ensures financial protection against unexpected accidents, legal claims, and medical expenses. It helps cover costs related to injuries, property damage, and potential lawsuits, preventing significant out-of-pocket expenses. This coverage provides peace of mind, knowing you’re safeguarded from financial burdens that could arise from accidents, whether you’re at fault or the victim. Additionally, it supports recovery by covering lost wages, legal fees, and medical treatments, allowing you to focus on getting back on your feet without financial stress.

Limitations & Exclusions

There are several limitations to both personal liability and personal injury coverage, as well as exclusions. For one thing, neither personal liability nor personal injury coverage typically covers intentional harm or illegal activities. If claims arise from business-related activities, they may not be covered under personal policies. Lastly, both types of coverage have limits, so ensure your policy provides adequate protection for your needs.

Understanding the difference between personal injury and personal liability is crucial for making informed decisions about insurance. Personal liability coverage protects you from the financial fallout of accidents causing physical harm or property damage. Personal injury coverage addresses non-physical harm, such as defamation or invasion of privacy, and can include medical expenses under auto insurance policies. When making decisions concerning your insurance coverage, it’s important to consider all possible scenarios in which coverage might be needed.

Schedule a Free Consultation with Chandler | Conway

All Chandler|Conway attorneys are incredibly experienced and knowledgeable in trial cases. Our attorneys will determine the best strategy for you and your family based on the specific circumstances of your situation and, when necessary, represent those interests in court.

Contact our agency by phone, email, or contact form.

Related Pages

Your Guide to Motor Vehicle Injury Settlements

10 Most Common Motor Vehicle Accident Injuries in Nebraska

3 Types of Commonly Overlooked Insurance Coverage

Medical Payment Coverage (Medpay) What is it? How is it used?

Do I Need a Personal Injury Lawyer?