Personal Liability vs. Personal Injury Coverage

Aside from seeking the best personal injury attorney after an accident, you may wonder about the difference between personal liability and personal injury coverage. The sound of these terms can obscure their true meanings. However, they’re both crucial for navigating a personal injury case and obtaining compensation. Here’s an in-depth look into the definition of these legal concepts.

What Is Personal Liability Coverage?

Personal liability provides coverage for bodily injury and/or property damage caused by another party’s neglect or wrongful actions. For example, if someone was injured at your home from tripping on steps or a damaged sidewalk, you (the homeowner) have a legal duty to pay for the damages. Personal liability coverage on your homeowner’s or renter’s insurance policy covers medical expenses and legal fees/settlements if you’re held liable to pay them. It can cover:

• Accidental damage to another person’s property
• The cost to repair or replace the property
• A claimant’s medical expenses and lost wages
• Injury from dog bites or property damage caused by dogs
• The costs of legal defense
• Damages awarded against you

If you’re found responsible for an injury or property damage, your current and future assets can be protected. However, personal liability coverage does not cover intentional bodily injury or property damage, injury/property damage by high-risk dog breeds, or injury to another member of the household. 

Also, standard liability coverage doesn’t cover damage or injury related to business activities (unless you have commercial liability insurance) or damage to a vehicle, which is covered under automobile insurance.

What Is Personal Injury Coverage?

A personal injury policy covers the cost of damages other than bodily injury or property damage. It’s not automatically included in a homeowner’s insurance policy. However, you can elect to purchase it as an add-on. Some of the damages it can cover include:

• False arrest, detention, or imprisonment
• Invasion of privacy
• Libel and/or slander
• Wrongful entry
• Wrongful eviction
• Malicious prosecution

Personal injury coverage can cover the legal costs associated with these types of claims. Such a personal injury claim isn’t unheard of today. Social media has made people more at risk of being responsible for mental harm to others. A parent can be held responsible for a child’s acts. A landlord can be sued for denying a tenant the right to rent property based on their race.

If you have personal injury coverage, it doesn’t necessarily protect you from making defamatory remarks. The insurance carrier can refuse to cover your claim if you knowingly committed libel or slander or took part in any illegal activity. Nevertheless, you can add personal injury to your insurance coverage for just a few dollars per year.

How Much Insurance Coverage Do I Need?

The scenarios each type of insurance covers can and do happen to people. Assuming you don’t need one or the other can have costly consequences later. Personal liability insurance is especially important from a financial perspective; injuries requiring extensive medical care can lead to lawsuits that cost hundreds of thousands and sometimes millions of dollars.

The least amount of liability insurance is typically $100,000. However, that’s too low to cover the costs of most injuries and lawsuits. With rising costs, purchasing at least $1 million in coverage is better. Annually, this doesn’t cost that much more than the minimum coverage amount. It’s also wise to obtain $1 million in personal injury coverage, given how expensive a lawsuit can be.

You can also purchase a personal umbrella insurance policy. Many insurance carriers won’t write policies for more than $1 million, and many lawsuits cost more than that. Consider such a policy if you have pets or a pool, trampoline, or playset on your property, which increases the risk of someone being injured at your home.

What Does Personal Liability Insurance Cost?

Personal liability coverage generally costs an extra $10 to $20 per year on top of the coverage you have. Increasing the limits on the policy increases the amount you pay. However, this is surprisingly affordable given the cost of insurance these days. Personal injury coverage is typically an extra $15 to $20 per year.

Jacob Can Work with Your Insurance Company

If you or a loved one has been injured in an accident due to someone else’s negligence or wrongful acts, The Law Offices of Jacob Emrani can help. We’ve won millions of dollars in personal injury settlements for our clients. On your own, getting an insurance company to pay a fair settlement can be difficult. But we know the tactics they use to pay as little as possible. Our personal injury attorneys fight for your rights to get the settlement you deserve. To learn more or receive a free consultation, call (888) 952-2952 today.