What does the term bodily injury refer to in insurance?

Bodily injury in insurance specifically refers to physical harm that affects a person's body. This term encompasses a wide range of potential injuries, including but not limited to actual physical injuries resulting from accidents, illnesses, and diseases. It is a fundamental component of liability insurance, as it addresses the financial consequences that may arise if an individual causes physical harm to another person.

This definition is crucial in the context of insurance policies, as claims related to bodily injury can affect the coverage decisions and the payouts made by insurance companies. Understanding bodily injury is important for both policyholders and those who may be involved in liability claims.

The other options represent different concepts: property damage pertains to physical harm to someone else's property rather than their person, injuries sustained in labor generally relate to workers' compensation contexts and not to general bodily injury definitions in liability insurance, and psychological trauma, while potentially serious and impactful, does not fall under the standard definition of bodily injury as it relates mainly to mental health rather than physical harm.