Personal Injury
Physical, mental, or emotional harm suffered by an individual as a result of an accident, negligence, or intentional act by another party. In insurance terms, it refers to bodily injury claims that may be covered under liability policies when the policyholder is found legally responsible for causing harm to others.
Example
“The restaurant's liability insurance covered the personal injury claim when a customer slipped on a wet floor and broke their wrist.”
Memory Tip
Personal Injury = 'Person hurt' - it's harm done to a person's body, mind, or emotions.
Why It Matters
Personal injury claims can result in substantial financial liability for individuals and businesses, often reaching hundreds of thousands or millions of dollars in severe cases. Having adequate liability insurance protects against these potentially bankrupting claims and provides legal defense when someone alleges you caused their injury.
Common Misconception
People often confuse personal injury with personal injury protection (PIP), but they are different concepts. Personal injury refers to harm suffered by others that you might be liable for, while PIP is insurance that covers your own medical expenses regardless of fault.
In Practice
Maria's dog bites a neighbor, causing injuries requiring $35,000 in medical treatment and resulting in $15,000 in lost wages. The neighbor files a personal injury lawsuit seeking $75,000 in damages. Maria's homeowner's insurance, which includes personal liability coverage up to $300,000, covers the legal defense costs and pays the $50,000 settlement reached out of court.
Etymology
From Latin 'personalis' meaning 'of a person' and 'injuria' meaning 'wrongdoing' or 'harm,' originally referring to legal wrongs done to individuals.
Common Misspellings
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Related Terms
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See Also
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