What is the primary purpose of commercial general liability insurance?

The primary purpose of commercial general liability (CGL) insurance is to cover businesses against claims of bodily injury, property damage, and personal injury. This type of insurance is designed to protect businesses from legal and financial liabilities arising from incidents that occur during the course of their operations. For instance, if a customer slips and falls on a wet floor in a store, CGL insurance would help cover legal costs and any awards for damages resulting from that incident.

This type of coverage is essential for businesses as it shields them from the potential financial devastation that can result from lawsuits or claims related to incidents occurring on their premises or as a result of their business activities. The comprehensive nature of CGL insurance means it includes a range of potential liabilities, making it a fundamental part of risk management for any business.

The other options provided relate to very specific scenarios but do not encapsulate the broad scope of coverage that CGL insurance offers. For example, coverage for employee theft specifically pertains to employee dishonesty and is typically addressed by fidelity bonds or crime insurance. Protection against loss of income due to business closure is generally covered by business interruption insurance, and insuring against natural disasters falls under specialized property insurance rather than general liability. Thus, while those coverages are important, they