Which two types of damages are most commonly covered by liability insurance?

Liability insurance is primarily designed to protect individuals or businesses from claims resulting from injuries or damages for which they are found legally responsible. The coverage provided by liability insurance typically includes two broad categories: bodily injury and property damage.

Bodily injury refers to physical harm that may result from an accident, which can include medical expenses, rehabilitation costs, and compensation for lost wages due to the injury. This type of coverage ensures that the injured party receives appropriate compensation for their suffering and financial losses.

Property damage covers incidents where the insured party is responsible for damage to someone else's property, such as vandalism, accidental damage to vehicles, or destruction of physical items. This coverage helps to repair or replace the damaged property, alleviating the financial burden on the responsible individual or organization.

While the other choices do mention important aspects of damages, they do not align with the primary focus of liability insurance. Emotional distress and punitive damages are more often associated with specific legal claims rather than standard liability coverage, whereas legal fees may arise from claims but are not directly the types of damages covered. Similarly, loss of income can be a consequence of bodily injury but is typically addressed in a different context under income replacement insurance or specific aspects of liability policies. Thus, bodily injury and property damage