What does "business liability" generally encompass?

Business liability typically encompasses the protection against legal obligations that arise from third-party claims. This means that if a business is sued for causing harm or damage to someone else or their property, liability insurance helps cover the legal costs, settlements, or judgments that may result from such claims.

When a third party suffers an injury or damage and holds the business legally responsible, liability insurance provides essential coverage that helps protect the financial stability of the business. This includes scenarios such as slip-and-fall accidents on business premises or injury caused by a product sold by the business.

Other choices relate to different types of coverage. For instance, protection against employee injuries is covered under workers' compensation, which is a distinct type of insurance aimed at employees rather than third-party claims. Coverage for lost profits and revenues falls under business interruption insurance, while insurance for property damage typically refers to property insurance, which protects the business's own physical assets rather than liabilities to others. Thus, the answer that accurately defines business liability is the one focusing on third-party claims.