Which of the following definitions best describes liability coverage in a Businessowners policy?

Liability coverage in a Businessowners policy is designed to protect businesses from claims resulting from injuries and damage for which they are found to be legally responsible. This coverage typically extends to both bodily injury, which encompasses physical harm to individuals, and property damage, which involves damage to another person’s or entity’s property as a result of the business's operations or activities.

By offering protection against these risks, liability coverage helps a business manage legal costs and potential settlements or judgments resulting from claims, ensuring that the company's financial health is safeguarded in the event of an incident. This dual protection is crucial for businesses as it allows them to operate with greater confidence, knowing that they are covered against common risks associated with managing a business.