Which type of insurance is designed to cover legal liabilities for injuries caused by the business’s operations?

General Liability Insurance is specifically designed to protect businesses from legal liabilities arising from injuries or damages caused by their operations, products, or accidents occurring on their premises. This type of insurance covers claims made by third parties, including bodily injury and property damage, thus providing financial protection against lawsuits and associated legal defense costs.

For instance, if a customer slips and falls in a store due to a wet floor, General Liability Insurance would cover the medical expenses and any legal fees incurred if the customer decides to sue. This makes it an essential component for businesses aiming to mitigate risks associated with everyday operations.

Workers' Compensation Insurance, while crucial for protecting employees who are injured on the job, does not cover the legal liabilities related to third-party claims. Similarly, a Business Owner's Policy combines various coverages and may include general liability, but on its own, it is not solely focused on covering legal liabilities for injuries. Property Insurance is aimed at covering damage to a business's physical assets and does not provide liability protection. Thus, General Liability Insurance is the most appropriate type of insurance for addressing legal liabilities related to business operations.