What is meant by bodily injury coverage in a liability policy?

Bodily injury coverage in a liability policy specifically refers to the protection provided against financial losses that arise from physical injuries sustained by others. This includes medical expenses incurred due to these injuries and any legal fees associated with defending against claims related to those injuries. This type of coverage is essential for businesses as it helps mitigate the financial risks of lawsuits or medical expenses that may arise if someone is injured on their premises or due to their operations.

In this context, the other options do not capture the full scope of bodily injury coverage. Emotional distress claims relate to psychological harm rather than physical injuries and might not fall under standard bodily injury provisions. Coverage for physical damage to personal property pertains more to property damage liability rather than bodily injury. Lastly, while non-employees can sometimes be covered under bodily injury provisions, bodily injury coverage fundamentally focuses on physical injuries regardless of the individual's employment status. Thus, option A accurately represents the core aspect of bodily injury coverage.