Which policy type provides protection against third-party claims due to negligence?

General liability insurance is specifically designed to protect businesses from third-party claims of bodily injury, property damage, and personal injury resulting from the business's operations, products, or services. This type of insurance covers legal costs and settlements that arise when a third party claims that they have suffered losses due to the negligence of the insured business.

For example, if a customer slips and falls in a store due to wet floors that were not adequately marked or cleaned, they may file a claim for damages against the business. General liability insurance would cover the business's legal defenses and any monetary compensation awarded to the injured party.

In contrast, property insurance primarily covers damages to the business's own property, rather than claims made by third parties. Commercial auto insurance is focused on vehicles used for business purposes and addresses issues related to vehicle-related incidents. Health insurance covers medical expenses for individuals, not third-party liability claims against businesses. Therefore, general liability insurance is the appropriate choice for protecting against third-party claims due to negligence.