Mississippi Property & Casualty Practice Exam 2026 – Comprehensive Prep Guide

Personal injury liability specifically covers non-physical injuries that can result from actions such as defamation, slander, libel, invasion of privacy, and false arrest. This type of liability insurance protects individuals or entities against claims that allege emotional damage or reputational harm caused by such actions.

The distinction here is important because while physical injuries from accidents and injuries sustained by the insured relate to bodily harm, personal injury liability focuses on the intangible harm that can occur without any physical injury. Property damage, on the other hand, pertains to damage inflicted on tangible items rather than personal reputations or feelings, which further underscores the unique scope of personal injury liability. Thus, the correct understanding of personal injury liability is crucial for anyone involved in risk management or insurance underwriting.