What is personal liability coverage designed to protect against?

Personal liability coverage is specifically designed to provide financial protection against claims for bodily injury and property damage that the insured may cause to others. This coverage is essential because it helps cover the costs associated with legal defense, judgments, or settlements resulting from such claims.

When someone is found liable for causing injury to another person—for example, if a guest slips and falls in their home—or for damaging someone else's property, personal liability coverage can help to cover the associated expenses. This makes it a crucial component in protecting the insured from financial loss due to unforeseen incidents where they may be deemed legally responsible for causing harm.

In contrast, other options focus on different types of coverage or claims that personal liability protection does not specifically address. Claims for damage to personal belongings pertain to property coverage, while unauthorized use of property might involve criminal implications rather than liability. Claims for loss of income are typically associated with business insurance rather than personal liability. Therefore, option B accurately reflects the primary purpose of personal liability coverage.