Which coverage is often included in commercial general liability insurance?

Study for the Alabama Property and Casualty Test. Explore flashcards and multiple choice questions, each accompanied by hints and explanations. Prepare effectively for your exam!

The answer is C, which pertains to coverage for bodily injury and property damage to others. This is a fundamental component of commercial general liability insurance. This type of insurance is specifically designed to protect businesses from claims arising from injuries or damages that occur as a result of their operations, premises, or products. It essentially covers legal costs and any settlements related to these claims, ensuring that businesses are financially protected against lawsuits stemming from accidents affecting third parties.

Coverage for bodily injury refers to physical harm suffered by individuals due to the company’s activities, while property damage covers the costs associated with damage to someone else’s property resulting from the business's operations. Therefore, this coverage is crucial for safeguarding a business's financial stability when facing claims from external sources related to injuries or damage.

The other options fail to align with the core offerings of commercial general liability insurance. Workers' compensation primarily addresses employee injuries, not third-party claims. Coverage for business property damage typically falls under property insurance rather than general liability. Employee dishonesty coverage relates to specific fidelity insurance protecting against losses due to dishonest acts by employees, which is outside the realm of general liability concerns.

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