Personal injury liability insurance is designed to protect the policy holder from lawsuits filed because of alleged damage to an individual resulting from invasion of privacy. This includes damage to someone's character, violation of their rights or invasion of their personal space. The term is also sometimes used to describe liability insurance coverage for a home or car.
Personal injury liability insurance covers the policy holder from lawsuits filed over issues like defamation, libel and slander. It also protects against lawsuits involving false arrest, unlawful imprisonment and malicious prosecution. Any illegal invasion of a person's home, possessions or privacy are also covered. This includes unlawful eviction and search.
Since personal injury liability insurance protects the insured from issues involving the spread of negative publicity, many journalists and media outlets have policies. Some governments and law enforcement agencies have forms of personal injury liability insurance to protect against accusations of unlawful arrest, detaining and prosecution of suspects. Some landlords, security companies and private investigators purchase personal injury liability insurance policies to shield themselves from lawsuits filed by people they deal with.
Personal injury liability insurance can also be tied into professional liability insurance. Certain professions deal with privacy matters. For example, if a doctor allegedly allowed personal medical information to be released to the public the doctor could be sued by a patient claiming personal injury. A personal injury liability insurance policy would protect the doctor from this lawsuit. Similar accusations of personal injury could be leveled at a former employee who revealed secret information about a company or anyone who violated a privacy agreement.
Personal injury liability insurance works just like any other insurance policy. The premium charged is based on the likelihood that there could be a big lawsuit filed against the insured party. There is a coverage amount that caps the cost to the insurance company. Sometimes there is a deductible that must be paid by the insured party in the event of a loss. If a lawsuit is filed that qualifies under the personal injury liability insurance policy, the insurance company will pay for lawyers to defend the case and for any settlement that results up to the policy limit.
Personal injury liability insurance is a term sometimes linked to automobile and home insurance. Auto liability insurance contains two parts: bodily injury liability and property damage liability. The term "personal injury liability" is sometimes used for them collectively. When it is applied to home insurance, it refers to coverage of people injured on your property or as a result of your actions. Technically both of these usages are incorrect since "personal injury" has a specific definition involving privacy and reputation. However, that has not prevented its usage in these ways.