What is Bodily Injury? - Insurance Navy. Bodily Injury refers to any physical injuries, sickness, disease, or death that a person may suffer due to an accident or incident. In the context of insurance, particularly auto insurance, bodily injury is a critical term as it forms the basis for “Bodily Injury Liability Coverage”; This type of coverage is designed to protect the policyholder against financial losses if they are found legally responsible for causing physical harm to another person in an accident.
Bodily Injury Liability Coverage typically pays for the injured person’s medical expenses, rehabilitation costs, and any legal fees or settlements if the policyholder is sued. It may also cover lost income if the injured party cannot work due to their injuries. The insurance coverage does not pay for the policyholder’s personal injuries or damages. Bodily injury liability insurance is not limited to visible injuries like cuts or broken bones.