What does a comprehensive general liability insurance policy typically protect a company against?

A comprehensive general liability insurance policy is designed to protect businesses against claims resulting from various risks and liabilities, particularly those arising from third-party injuries or property damage. In this context, the correct answer, which addresses accidents at the job site that damage a neighbor's house, falls within the scope of coverage provided by a general liability policy.

This type of policy typically covers incidents where a company’s operations result in property damage to another party's property or bodily injury to third parties. For example, if during construction work, a piece of equipment accidentally damages a neighbor’s home, the general liability insurance would cover the costs associated with repairs and any legal fees if a claim arises.

In contrast, employee injuries are generally covered under worker's compensation insurance rather than general liability insurance. Equipment theft is more appropriately covered under a commercial property insurance policy. Natural disasters, while sometimes included in specific policies, are not covered under general liability and often require separate coverage such as property insurance or flood insurance. Thus, the comprehensive general liability insurance specifically addresses third-party liability, making it an essential safeguard for businesses operating in potentially hazardous environments.