What is the primary purpose of General Liability insurance?

The primary purpose of General Liability insurance is to cover bodily injury or property damage claims. This type of insurance is designed for businesses to protect them from financial losses resulting from lawsuits or claims made by third parties for injuries or damages that occur on their premises or as a result of their operations. It serves as a safeguard against potential legal costs, settlements, and judgments that can arise from incidents such as slips and falls on business property or damage caused by a product.

This coverage is essential for safeguarding a company's financial health, as a single incident can lead to substantial expenses. It enables businesses to operate with the confidence that they have the necessary resources to handle claims that could potentially disrupt operations. Properly structured General Liability insurance ensures that a business can manage its risks effectively and remain solvent in the face of unforeseen circumstances.

The other options focus on specific areas of coverage that do not align with the broad protective scope of General Liability.