In terms of liability, what type of insurance typically covers damages incurred by customers on business premises?

The correct answer is Premises Liability Insurance because this type of insurance specifically addresses legal liability for bodily injury and property damage that occurs on a business's premises. It protects the business owner against claims resulting from injuries sustained by customers or visitors due to various hazards, such as slips and falls, inadequate maintenance, or other conditions present in the physical location of the business.

This insurance is essential for protecting businesses from potential lawsuits and liability claims arising from accidents that may happen while customers are on the property. By covering medical expenses, legal fees, and settlements, Premises Liability Insurance helps ensure that businesses can handle claims without severe financial repercussions.

Other types of insurance, such as General Liability Insurance, typically cover a broader scope, including operational liabilities but may not focus specifically on the premises aspect. Product Liability Insurance relates to injuries or damages caused by products sold by the business, while Professional Liability Insurance is geared towards services provided by professionals and does not apply to physical injuries on business premises.