What does a general liability policy typically cover?

A general liability policy is designed to provide coverage for a broad range of risks associated with business operations. This type of policy typically covers bodily injury, which includes physical harm to individuals; property damage, which involves damage to someone else's property; and personal injury claims, which can encompass a wide array of non-physical harm such as defamation, slander, or privacy violations.

This comprehensive nature of coverage is key for businesses as it protects them from various legal liabilities that may arise during the normal course of operations. For example, if a customer slips and falls on a company's premises and suffers an injury, the general liability policy would cover the resulting claims for bodily injury. Similarly, if a company's activities inadvertently damage a neighbor's property, the policy would respond to cover those damages.

Options that only address limited aspects of coverage, such as property damage alone or solely injury claims against the insurer, do not accurately reflect the range of protections that a general liability policy offers. Additionally, life insurance benefits relate to a completely different type of coverage and are not applicable to general liability policies. Thus, the correct choice encompasses the full spectrum of risks that a general liability policy covers, making it the most accurate answer.