Which situation does NOT qualify as an example of "bodily injury" under liability insurance?

The situation that does not qualify as an example of "bodily injury" under liability insurance is the neighbor's emotional trauma from witnessing an event. In liability insurance, "bodily injury" typically involves physical harm to a person's body. This can include injuries that require medical treatment, such as a dog bite needing stitches, a fatal accident like the letter carrier's fall, or even a food-related illness that causes physical symptoms.

Emotional trauma, while serious and potentially leading to psychological distress or claims for mental anguish, does not fall under the traditional definition of bodily injury, which is explicitly about physical injuries and ailments. Thus, in this context, emotional trauma would not be covered as a "bodily injury" in standard liability insurance policies, which focus on physical rather than emotional or psychological injuries.