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

The primary purpose of a commercial general liability policy is to provide coverage for legal liabilities that a business may face as a result of its operations. This includes protection against claims of bodily injury, property damage, and personal injury that might arise from the business's activities, premises, or products. The policy ensures that if someone files a lawsuit due to incidents linked to the business, the costs of legal defense, settlements, or judgments will be covered.

This type of policy is essential for businesses, as it helps manage risks associated with various liabilities and protects their financial stability. It's specifically designed to handle the legal fallout from accidents or negligence that could result in financial loss due to claims.

While other options suggest important aspects of business insurance, such as covering property damage or employee injuries, they do not encompass the broader scope of legal liabilities addressed by a general liability policy. These aspects may be covered by different types of insurance, but for the purpose of this question, it's clear that the defining characteristic of a commercial general liability policy is its comprehensive coverage of legal liabilities.