Commercial general liability insurance assists businesses by covering which type of liabilities?

The correct answer highlights that commercial general liability insurance primarily provides coverage for bodily injury or property damage that occurs on the business's premises or as a result of the business's operations. This means if a customer is injured while visiting a store or if a product manufactured by the business causes damage to someone else's property, the insurance is designed to cover those instances.

This coverage is critical for businesses as it protects them from significant financial losses that can arise from lawsuits or claims resulting from accidents or damages. Without this protection, a business could face substantial out-of-pocket expenses to address these liabilities, which could potentially threaten its financial stability or even its existence.

Other options, while they touch on concepts related to liabilities, do not accurately represent the specific purpose and scope of commercial general liability insurance. For instance, workers' compensation claims are addressed through a different type of insurance designed specifically for employee-related injuries. Likewise, while financial losses can arise from lawsuits, commercial general liability insurance does not cover all types of financial losses or any lawsuit indiscriminately; it is specifically tailored to incidents involving bodily injury or property damage.