Bodily injury (BI) is a term used in insurance to describe what?

• A. Commercial general liability insurance.
• B. Property insurance.
• C. Employee benefits policy.
• D. Automobile liability policy.

Answer: (A)

Bodily injury refers to physical harm to people, such as injuries, illnesses, or loss of life, that can result from the insured’s actions. In liability coverage, this kind of loss is addressed by Commercial General Liability (CGL) insurance, which protects a business from claims arising when someone is injured or becomes ill due to the business’s operations, products, or on-site activities. The BI portion of a liability policy helps cover medical expenses, legal defense, and settlements related to those injuries, up to policy limits. This concept fits with CGL because the policy is designed to handle third-party injuries and related claims, not damage to property or injuries related to the insured’s own business property, which would be covered by other types of insurance. Property insurance focuses on physical property damage, employee benefits policies cover benefits for employees, and automobile liability covers injuries and property damage from vehicle incidents, not general business injuries to others.