What is the primary purpose of commercial general liability insurance?

The primary purpose of commercial general liability insurance is to protect businesses from claims of bodily injury, property damage, and personal injury. This type of insurance is designed to provide coverage for incidents that can occur during the normal operations of a business, such as injuries to customers while on the business premises or damage caused by the business to someone else's property.

For instance, if a customer slips and falls in a retail store, commercial general liability insurance would cover the legal costs and any settlements or judgments resulting from that claim. Similarly, if a business unintentionally damages a client's property, this insurance would help cover the costs associated with those damages.

This coverage is essential for businesses because it not only helps mitigate financial risks associated with liability claims but also enhances the company's reputation by demonstrating a commitment to responsible management practices. Other options, such as offering comprehensive coverage for employee health or financial support for business expansion, do not address liability coverage. Additionally, insurance for losses from natural disasters falls under different types of coverage, such as property insurance or specialized disaster insurance, rather than commercial general liability.