What is the primary purpose of a commercial general liability policy?

The primary purpose of a commercial general liability policy is to protect against bodily injury and property damage claims. This type of policy provides crucial coverage for businesses by addressing the costs that may arise from incidents where third parties suffer injuries or damages as a result of the business's operations, products, or premises.

For instance, if a customer slips and falls in a store or if a product sold by the business causes damage to a customer's property, the commercial general liability policy would cover legal fees, medical expenses, and any settlements or judgments that arise from such claims. This helps businesses to manage their risk and financial exposure related to these types of common liabilities.

Coverage for property damage only is too narrow and does not encompass the broader range of risks covered under a general liability policy, which includes bodily injury as a fundamental aspect. Options related to business interruption or loss of income do not fall within the scope of general liability; those are typically covered under specific business interruption or loss of income policies. Therefore, the broad protection against both bodily injury and property damage claims encapsulates the core function of commercial general liability insurance.