What defines property damage in an insurance context?

Property damage in an insurance context is primarily defined as the physical injury to tangible property, which encompasses any damage that affects the physical structure or integrity of an object. This includes damage to real estate, vehicles, equipment, and other physical items.

Understanding this concept is crucial in commercial casualty insurance, where policies often cover liability for damages that occur to tangible property owned by third parties. This definition helps clarify the scope of coverage and provides a framework for evaluating claims related to property incidents.

Other options, like the loss of documents or damage to intangible assets, do not fit the definition of property damage as they usually pertain to forms of loss that do not involve the physical destruction or impairment of tangible items. Similarly, loss of life is a matter of bodily injury and not classified under property damage. Thus, recognizing that property damage relates specifically to the physical harm of tangible property is essential in navigating insurance policies effectively.