What type of policy typically addresses liability arising out of property damage?

General liability insurance specifically covers liability arising from property damage, providing protection to individuals or businesses when they are held responsible for causing harm to someone else's property. This type of policy addresses various scenarios where an insured party might accidentally damage property, such as through negligence in a business setting or while hosting an event.

It is designed to offer a broad spectrum of coverage for legal defense costs and settlements, which is critical for those who may face lawsuits related to such incidents. Understanding the nuances of coverage ensures that clients are adequately protected against potential financial losses due to unexpected property damage claims.

While property insurance concentrates on protecting one's own property from damage or loss, and homeowners insurance includes some liability coverage related to accidents on the homeowner's premises, they do not focus specifically on third-party property damage like general liability insurance does. Similarly, automobile liability insurance primarily deals with liability arising from automobile-related incidents rather than property damage in a broader context.