What does a 'General Liability' policy cover?

A 'General Liability' policy is designed to protect businesses from a variety of risks, primarily related to third-party claims. This type of insurance covers third-party bodily injury, property damage, personal injury, and advertising injury.

Bodily injury coverage addresses situations where a third party is injured on the insured's premises or as a result of the insured’s operations. Property damage coverage protects against claims for damage to someone else's property caused by the insured's actions or operations. Personal injury refers to non-physical injury claims, such as defamation or invasion of privacy, while advertising injury covers claims arising from the advertising of the insured’s goods or services, such as copyright infringement or misappropriation of advertising ideas.

This comprehensive coverage is critical for businesses as it shields them from potentially devastating financial losses resulting from a variety of claims related to their operations and business activities.

The other choices do not accurately portray the full scope of what a General Liability policy encompasses. Some cover only specific aspects like property damage or advertising injury, which do not reflect the breadth of coverage provided by a General Liability policy. Legal representation costs may also be part of the policy but are not the main coverage focus, as they are typically included under the broader coverage for the categories mentioned.