Property and Casualty Insurance Practice Exam

What does the Personal Injury Endorsement add to a standard insurance policy?

1. Increased coverage for property damage

2. Definition of bodily injury including slander and libel

3. Coverage for health-related issues

4. Increased aggregate limits

The correct answer is: Definition of bodily injury including slander and libel

The Personal Injury Endorsement enhances a standard insurance policy by including coverage related to specific non-physical injuries such as slander and libel. This endorsement expands the traditional definition of bodily injury, which typically encompasses physical harm, to also cover certain forms of personal injury that can result from actions like defamation or invasion of privacy. While bodily injury generally pertains to physical harm sustained by individuals, personal injury extends the scope to protect individuals from losses related to their reputation or emotional well-being caused by these types of non-physical harm. As a result, the endorsement is particularly valuable for businesses and professionals who could face claims of defamation, which may not be adequately covered under a standard liability provision. In contrast, options related to property damage, health-related issues, or aggregate limits do not fall under the purview of the Personal Injury Endorsement. This endorsement specifically addresses the nuanced area of personal injury, making it a crucial addition for comprehensive coverage.