What type of loss is typically covered by a General Liability policy in business insurance?

A General Liability policy is designed to protect businesses from a variety of claims that may arise during their operations. One of the key areas of coverage provided by this type of policy is bodily injury to third parties. This means that if a person who is not an employee is injured on the business's premises or as a result of the business's operations, the General Liability policy will cover the legal costs and any settlements or judgments that may arise from that injury.

This type of coverage is crucial for businesses, as it ensures they are protected against claims that could result from accidents involving customers or other visitors. It also helps in maintaining a positive reputation and trust, as it allows businesses to operate with the knowledge that they have a safety net in the face of potential legal action due to unforeseen incidents.

While other options like loss of business income, property damage to owned buildings, and loss of inventory are all significant aspects of business risk, they fall under different types of insurance policies. For instance, loss of business income is typically covered by business interruption insurance, property damage to owned buildings would be covered under a property insurance policy, and loss of inventory could be addressed through a specific commercial property insurance policy.