The question can be answered in a couple of ways:
1. Third-party coverage is sometimes called liability coverage. It provides benefits for third-party who sustains damage or injury due to the carelessness of the insured. In this context, bodily injury coverage within the liability protection will provide benefits to the injured party for his/her injury. Note, though, that it will pay only upon a finding that the insured was legally responsible for the injury, and that BUT FOR the action or inaction of the insured, the injury would not have occurred. This is the concept of proximate causation.
2. Bodily injury coverage can exist in a first-party policy as well. This is a policy under which the insured is him/herself insured. Examples are the uninsured motorist and personal injury protection coverages of an automobile policy.
Chat with our AI personalities