What does "premises and operations" coverage protect against?

"Premises and operations" coverage is a crucial component of commercial general liability insurance that specifically protects businesses against liability claims related to their operations and the use of their premises. This coverage is designed to address injuries or damages that may occur on the business’s property or as a direct result of the business's activities.

For example, if a customer slips and falls inside a retail store or if a contractor accidentally damages a neighboring property while working, this coverage would respond to those types of incidents. It essentially provides a safety net for claims that arise from both the physical location of the business (the premises) and the activities conducted there (operations).

The other choices describe different types of risks not covered by "premises and operations" coverage. Loss of business equipment at external locations, for instance, pertains more to property insurance or inland marine coverage. Damage to employee vehicles while on company business would typically be handled under a commercial auto policy, while injuries occurring off-site will be addressed through workers' compensation rather than under premises and operations coverage.