What is "property damage liability" coverage?

Property damage liability coverage is specifically designed to cover the costs associated with damages that the policyholder may accidentally cause to someone else's property. This type of insurance is essential for businesses as it provides financial protection in the event that their operations result in property damage to others, such as through an accident involving company vehicles or incidents occurring at the workplace.

If a business were to cause damage to a client's property, property damage liability coverage would help pay for the repairs or replacement of that property, thereby protecting the business from potentially significant out-of-pocket expenses. This coverage is a critical component of general liability insurance policies commonly held by businesses, as it helps ensure that they can operate without the constant fear of incurring substantial costs due to accidental damage to others' property.

In contrast, the other options mentioned do not accurately represent what property damage liability coverage entails. Coverage for damages to the policyholder's own property, theft of property, and employee injury are all distinct types of coverage that serve different insurance needs and are therefore not applicable in this context.