What does the term "Bodily Injury" (BI) in liability insurance refer to?

• A. Physical damage to property
• B. Physical damage to someone's person due to negligence
• C. Emotional distress claims
• D. Injury claims resulting from product malfunctions

Answer: (B)

The term "Bodily Injury" (BI) in liability insurance specifically refers to physical damage or injury sustained by a person as a result of someone's negligence. This encompasses a wide range of physical injuries that might occur, including medical expenses, lost wages, and pain and suffering directly linked to the incident. The focus is on the impact that an action has on an individual's physical well-being, which is crucial in determining liability and insurance coverage.

While other concepts like emotional distress claims may relate indirectly to bodily injury, they do not fall under the definition of BI as defined within typical liability insurance policies. Similarly, property damage and product malfunctions pertain to other types of coverage and do not address personal injury directly. This distinction helps clarify the coverage and responsibilities involved in liability insurance claims.