What type of coverage is generally provided by a liability policy?

A liability policy typically provides coverage for both property damage and personal injury. This type of coverage is designed to protect the insured from financial loss in the event that they are found legally responsible for causing harm to another person's property or for inflicting bodily injury.

Property damage coverage pays for damages that the insured might cause to someone else's physical property. This could include scenarios such as accidentally damaging a neighbor's fence or hitting another person's vehicle in a car accident.

On the other hand, personal injury coverage encompasses a range of claims that may involve harm to a person's reputation or emotional wellbeing, such as defamation (libel or slander) or invasion of privacy.

Together, these two components create a comprehensive liability coverage that safeguards individuals and businesses against various claims arising from their actions or negligence, reinforcing the importance of having both property damage and personal injury protection in a liability policy. Other options, such as medical payments, refer to coverage for injuries rather than liability, which is not the primary focus of a standard liability policy.