What type of insurance covers damages up to the policy limits when an insured harms someone during the insurance policy period?

What type of insurance covers damages up to the policy limits when an insured harms someone during the insurance policy period?

• A. General Liability Insurance
• B. Builder's Risk Insurance
• C. Professional Liability Insurance
• D. Property Insurance

Answer: (A)

General Liability Insurance is designed to protect individuals and businesses from claims of bodily injury or property damage that occur on their premises or as a result of their operations. This type of insurance covers damages up to the policy limits when the insured is found to be at fault for harming another party during the coverage period. It is essential for contractors, builders, and businesses to have this insurance to address the financial risks associated with lawsuits and claims from third parties due to negligent acts. In contrast, Builder's Risk Insurance specifically protects against damage to a construction project itself, including the structure and materials, rather than liabilities to third parties. Professional Liability Insurance, also known as Errors and Omissions Insurance, covers claims arising from professional mistakes or negligence related to services offered, which may not necessarily involve physical harm. Property Insurance protects tangible assets owned by the insured, such as buildings and equipment, but does not extend to liability claims against others. Thus, General Liability Insurance is the most relevant and appropriate choice for covering damages due to harm caused by the insured.

General Liability Insurance is designed to protect individuals and businesses from claims of bodily injury or property damage that occur on their premises or as a result of their operations. This type of insurance covers damages up to the policy limits when the insured is found to be at fault for harming another party during the coverage period. It is essential for contractors, builders, and businesses to have this insurance to address the financial risks associated with lawsuits and claims from third parties due to negligent acts.

In contrast, Builder's Risk Insurance specifically protects against damage to a construction project itself, including the structure and materials, rather than liabilities to third parties. Professional Liability Insurance, also known as Errors and Omissions Insurance, covers claims arising from professional mistakes or negligence related to services offered, which may not necessarily involve physical harm. Property Insurance protects tangible assets owned by the insured, such as buildings and equipment, but does not extend to liability claims against others. Thus, General Liability Insurance is the most relevant and appropriate choice for covering damages due to harm caused by the insured.