In insurance terminology, what does "personal injury" encompass?

The term "personal injury" in insurance terminology primarily refers to non-physical harm that individuals may experience. This includes legal claims regarding defamation, invasion of privacy, mental anguish, and other similar grievances that do not result in direct physical harm to a person’s body. In the context of liability insurance, coverage for personal injury is crucial as it protects individuals and businesses from lawsuits that arise from these non-physical injuries.

Physical harm to an individual is generally categorized differently as bodily injury, which focuses on actual physical damage or injury sustained. Similarly, injuries caused during a car accident would fall under bodily injury claims specific to auto insurance policies. Workplace injuries are typically covered under worker's compensation, which deals specifically with injuries occurring during the course of employment rather than general non-physical harm. Thus, the characterization of personal injury as encompassing non-physical harm is accurately captured in the correct choice.