What is the primary intent of a "general liability policy"?

The primary intent of a general liability policy is to protect businesses from claims of bodily injury, property damage, and personal injury. This type of insurance is essential for businesses as it safeguards them against various legal liabilities that can arise during their operations. For instance, if a customer slips and falls on business premises and suffers an injury, the general liability policy would cover the legal expenses and potential settlements or judgments against the business. Similarly, if the business inadvertently damages a client’s property, this policy would provide coverage.

General liability insurance is crucial because it also provides protection from claims of personal injury, which can include allegations of libel, slander, or invasion of privacy. Thus, businesses can operate with greater peace of mind, knowing that they have financial protection against these common risks.

The other options relate to different types of coverage: medical coverage for employees is typically covered under workers' compensation insurance; management of property risks aligns with property insurance; and loss of income due to a disaster would fall under business interruption insurance. These are distinct categories of coverage that do not encapsulate the primary focus of a general liability policy.