Coverage that pays when you are legally responsible for hurting someone else.

"Coverage" means part of an insurance policy, usually auto insurance, with a dollar limit. "Pays" means the insurer covers costs up to that limit, not forever and not for every kind of loss. "Legally responsible" means there has to be fault under the law, whether through negligence, a traffic crash, or another covered event. "Hurting someone else" means physical harm to another person's body, including medical bills, lost wages, pain and suffering, and sometimes legal defense costs if you are sued. It does not pay for your own injuries, and it usually does not pay for damage to cars, buildings, or other property - that is property damage liability or another kind of coverage.

Practically, this is the part of a policy that protects a driver, business, or property owner when another person is injured and makes a claim. If the injuries are serious - broken bones, surgery, long rehab, permanent limits on work - the policy limit can be used up fast. After that, the injured person may try to collect the rest directly from the person who caused the harm.

In an injury case, bodily injury liability coverage often sets the first real ceiling on what can be paid without a trial. Most states require minimum liability insurance for drivers, but the minimum may be far below the value of a serious personal injury case.