In what situation would Personal Liability Coverage be applicable?

Personal Liability Coverage is designed to protect individuals from claims made against them for bodily injury or property damage that they may unintentionally cause to other people. This coverage typically applies in situations where the insured is found to be at fault for causing harm to another person or their property.

In the context of the options provided, Personal Liability Coverage would be applicable when a guest is injured on the insured's property. This scenario falls squarely within the scope of personal liability, as the insured may be held responsible for the injuries occurring on their premises due to accidents or unsafe conditions. If a guest slips and falls or sustains an injury while visiting, this coverage would help protect the insured from potential legal claims arising from that incident.

The other options concern different types of situations that do not involve personal liability coverage. For instance, assisting someone in a business transaction is typically not covered as it is more related to professional liability than personal liability. A car accident usually falls under auto insurance coverage, while theft of personal property would fall under the homeowner's or renter's insurance rather than personal liability coverage.