What is the primary purpose of Commercial General Liability insurance?

The primary purpose of Commercial General Liability insurance is to protect businesses from lawsuits. This insurance is designed to cover the legal costs and any damages that may arise from claims made against a business for bodily injury, property damage, or personal and advertising injury. It acts as a safeguard for businesses against the financial repercussions of claims, which could pose a significant threat to their financial stability. The coverage typically includes costs associated with defending against lawsuits, settlements, and judgments, thereby offering a crucial layer of risk management for businesses in various industries.

Other options do not align with the core function of Commercial General Liability insurance. For instance, coverage for employee injuries is typically addressed by Workers' Compensation insurance, which is specifically designed to handle workplace injury claims. Property theft generally falls under property insurance or specialized coverages, not general liability. Lastly, employee health benefits are typically provided through health insurance policies and are separate from liability coverage, which focuses on legal claims rather than employee health matters.