Property Damage Liability
Coverage for physical damage to tangible property of others for which the insured is legally liable.
Property damage liability pays to repair or replace others' property — a fence hit by a car, water damage to a neighbor's unit from a contractor's mistake (if covered), or a customer's vehicle damaged in your care. It pairs with bodily injury in CGL and auto liability.
Examples
A contractor backs a truck into a client's garage door; GL property damage pays repair costs.
Common Misconceptions
Confusing PD liability with first party collision on your own vehicle. Expecting GL to cover your own tools without inland marine coverage.
Related Terms
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Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
