What type of risk does "general liability insurance" typically cover?

General liability insurance is designed to protect businesses and individuals from claims related to bodily injury or property damage that may occur as a result of their operations or activities. This type of insurance covers legal fees, settlements, and other costs arising from claims where a third party alleges that they suffered a loss or injury due to the actions or negligence of the insured party.

The coverage provided under general liability insurance is broad, encompassing physical injuries to individuals and damages to someone else's property that the policyholder might be held responsible for. This is crucial for businesses, as even minor incidents could lead to significant financial repercussions if a claim is filed. By providing this coverage, general liability insurance helps ensure that a business can manage risks associated with everyday operations and interactions with clients, customers, and members of the public.