Ace the 2025 CPHRM Challenge – Rock Your Health Care Risk Management Skills!

General liability insurance (GL) is designed to provide coverage for a broad range of risks that a business may encounter. The correct choice highlights that GL covers liability resulting from incidents and operations that occur on-site. This includes protection for bodily injuries that may happen to visitors or clients while they are on the premises, as well as other liabilities that could arise from the daily operations of the business.

The focus on incidents and operations emphasizes that the coverage is not limited to just injuries but also includes various claims resulting from the business activities, such as accidental damage to a third party's property. This comprehensive nature of GL is essential for business risk management, as it helps to mitigate financial losses from potential lawsuits or claims related to accidents that occur during normal operations.

In contrast, the other choices address more specific aspects of liability coverage that do not encompass the full scope of general liability insurance. For instance, limiting coverage to only personal injuries on-site does not account for the broader range of liabilities GL encompasses. Similarly, focusing solely on property damage caused by products or on legal costs during litigation does not fully represent the diverse risks covered by GL, which includes various forms of liability beyond those specific circumstances.