Liability coverage for bodily injury and property damage caused by personal activities is typically provided by which type of insurance?

The correct answer identifies personal liability insurance as the type of coverage that addresses liability for bodily injury and property damage resulting from personal activities. This insurance is specifically designed to protect individuals from claims arising from accidents that occur on their property or as a result of their actions.

For instance, if a guest is injured while visiting your home or if you accidentally damage someone else's property, personal liability insurance would help cover the costs associated with those incidents, including legal fees if a lawsuit is filed against you. This type of coverage is crucial for providing financial protection in situations where someone seeks compensation for accidents linked to your personal activities.

In contrast, homeowner's insurance does include liability coverage, but it also encompasses other risks like damage to the home and its contents. Auto insurance specifically covers liability resulting from vehicle-related incidents. Commercial liability insurance is relevant for businesses and offers protection against bodily injury and property damage occurring in a business context. Each of these other types of insurance serves different needs, but personal liability insurance focuses specifically on individual personal liability scenarios.