Property damage is a type of liability exposure primarily covered by which insurance component?

• A. Property Casualty Insurance
• B. General Liability portion of CPP
• C. Workers' Compensation
• D. Employment Practices Liability

Answer: (B)

Property damage as a liability exposure means a claim that you caused damage to someone else’s property. That kind of exposure is addressed by liability coverage, not by insuring your own property. In a Commercial Package Policy, the General Liability portion handles third-party claims for property damage (and bodily injury) that arise from your operations, products, or premises. Insurance for your own property would come from property coverage, not liability. So, when the question asks which component primarily covers property damage as a liability exposure, the General Liability portion of a CPP is the right fit. The other options address different risks: workers’ compensation covers employee injuries, employment practices liability covers claims about how you treat employees, and property casualty is a broad category rather than the specific liability component that protects third-party property damage.