What is "general liability insurance" designed to cover?

General liability insurance is specifically tailored to protect businesses from claims of bodily injury and property damage that may occur on their premises or as a result of their operations. This insurance is crucial for businesses because it provides coverage when third parties, such as customers or visitors, sustain injuries or damage to their property while on the business premises or due to the business's activities.

For instance, if a customer slips and falls in a store and incurs medical expenses, general liability insurance would help cover those medical costs. Similarly, if a business accidentally causes damage to a neighbor's property, this insurance would assist in covering the repair costs.

This type of policy typically does not extend to injuries to the insured's family members, as these would fall under personal insurance obligations. Additionally, it does not cover losses incurred from business interruption or provide coverage for accidental death and dismemberment, which are addressed by other specialized insurance products. Thus, the correct choice reflects the core purpose and function of general liability insurance in safeguarding businesses against third-party claims.