What are the two main types of liability coverages in insurance?

The two main types of liability coverages in insurance are property damage and bodily injury. Property damage liability coverage is designed to cover damages that you may cause to someone else’s property, such as their vehicle, home, or other possessions. This coverage is essential for protecting the policyholder from financial loss due to accidental damage caused to another person's property.

Bodily injury liability coverage, on the other hand, provides financial protection in the event that someone is injured due to your negligence or intentional actions. It covers medical expenses, lost wages, and legal fees associated with injuries sustained by others. These two types of liability coverage are fundamental in most insurance policies because they address the two primary areas where a policyholder might be held financially responsible for their actions—damaging property and causing injury to others. Understanding these coverages is crucial as they form the backbone of liability protection in various insurance contexts, including auto and homeowners insurance.