Which of the following accurately describes general liability insurance?

General liability insurance is designed to provide coverage for businesses against various risks that can lead to injuries and damages for which they may be held legally responsible. This type of insurance typically covers claims arising from bodily injury, property damage, personal injury (like slander or false advertising), and other related incidents that occur as a result of the business's operations.

This insurance is crucial for businesses because it protects them from the financial burden associated with lawsuits or claims made by third parties. Such liabilities could stem from accidents that occur on business premises, within business operations, or even through the products offered by the business. By understanding that general liability insurance encompasses these broader aspects of risk management, it becomes clear why this choice accurately describes the purpose and function of general liability insurance.

The other options do not correctly characterize general liability insurance. For instance, while insurance for personal property losses focuses on protecting physical assets, and insurance for employee injuries specifically pertains to workers' compensation, general liability addresses the broader scope of business liabilities. Similarly, insurance for high-risk investments is unrelated to liability and more concerned with the financial security of investments rather than coverage for injuries or damages related to business activities.