What does liability coverage in commercial insurance protect against?

Liability coverage in commercial insurance is designed to protect businesses from legal claims that arise due to damages or injuries caused by their operations, products, or services. This includes a variety of scenarios, such as bodily injury to customers on the business premises or damage to someone else's property as a result of business activities. When a business faces lawsuits or claims, liability coverage can help cover the legal expenses, settlements, or judgments, thus providing financial protection during potentially costly legal battles.

The other options describe types of coverage that are not included under liability protection. Natural disasters, for example, typically fall under property insurance, which covers physical damages to the business's property. Income loss due to business interruptions is typically covered by business interruption insurance, which compensates for lost income during times when the company cannot operate. Lastly, theft of business assets is addressed by crime insurance or property insurance, ensuring that businesses are protected from financial loss due to theft. Understanding the precise role of liability coverage is essential for effective risk management in a commercial insurance context.