Bodily injury liability coverage is part of most automobile insurance policies and provides protection against claims for damages in the case of an accident causing injury or death to others, notes Liberty Mutual Insurance. Most states require bodily injury liability coverage, and most states require a minimum limit of coverage to be paid by the insurance company for each person involved in an accident and per accident.
Bodily injury liability insurance does not directly provide coverage for the policyholder, other drivers covered under the insurance policy or the insured vehicle, explains the National Association of Insurance Commissioners. Bodily injury liability coverage is used for accidents caused by the policyholder's negligence that injure or kill other people. In cases where the policyholder causes an accident and is sued, this insurance protects against the injured person's claims for damages.
Bodily injury liability insurance covers the damages that the policyholder is found to be responsible for legally after a motor vehicle accident, including the injured party's medical expenses, lost wages due to time off work because of the injury, and pain and suffering, according to CarInsurance.com. This coverage also pays for funeral expenses if someone is killed in an accident, as well as attorney fees for the legal defense if a lawsuit results from an accident that injures someone.