Which scenario is an example of personal injury under liability coverage?

• A. A newsletter inappropriately listing an owner as delinquent in assessments
• B. A resident slips and falls in the pool
• C. A water leak damages a unit
• D. A fire damages the clubhouse

Answer: (D)

Personal injury in liability coverage refers to non-physical harm to a person’s rights, such as defamation, invasion of privacy, false arrest, or wrongful eviction. Defamation happens when something published or spoken harms someone’s character or reputation. In this set of scenarios, a newsletter that improperly lists an owner as delinquent in assessments is defaming that owner. That non-physical harm to a person’s reputation fits personal injury coverage.

The other situations involve physical injury or property damage, which are not personal injuries: a resident slipping and falling is bodily injury (physical harm to a person), while a water leak and a fire are property damage (harm to property, not to a person’s rights). So the scenario that illustrates personal injury under liability coverage is the defaming newsletter.