Which policy typically provides coverage for damages to third parties?

Commercial general liability insurance is specifically designed to protect businesses from claims arising from injuries or damages suffered by third parties. This type of policy typically covers various liabilities including bodily injury, property damage, personal and advertising injury that may occur on the business premises or as a result of business operations.

In the context of third-party claims, this coverage is essential for businesses as it helps defend against lawsuits and pays for settlements or judgments if the business is found liable for such damages. The focus of commercial general liability insurance is to safeguard the financial well-being of a business in relation to its interactions with clients, customers, and the public.

Workers' compensation insurance, on the other hand, provides benefits to employees who are injured or become ill as a result of their job duties, focusing solely on employee claims and not on third-party damages. Property insurance generally protects the business's own property and assets, rather than providing coverage for third-party claims. Professional liability insurance, also known as errors and omissions insurance, protects professionals against claims of negligence or failure to perform their duties but does not broadly cover third-party claims in the way that commercial general liability insurance does.