Which of the following statements about general liability insurance is accurate?

The accurate statement about general liability insurance is that it does not cover liability from professional services. General liability insurance is primarily designed to protect businesses from claims involving bodily injury, property damage, and personal injury that might occur during the course of business operations. However, it specifically excludes coverage for professional services and the associated risks that arise from providing those services.

For example, if a contractor provides design or consulting services and a client claims that a design flaw led to property damage, general liability insurance would not cover this exposure. Instead, professional liability insurance, sometimes referred to as errors and omissions insurance, would be necessary to address such claims related to professional services.

The other statements do not accurately reflect the scope of general liability insurance. It does not cover all types of project risks, as it specifically excludes certain risks related to professional services. Furthermore, while many contractors find general liability insurance to be a beneficial form of protection, it is not universally mandatory for all contractors; requirements can vary by location and type of work. Lastly, while it is an important type of insurance, it is typically not the only insurance required on construction projects, as contractors may also need other types of coverage, such as workers' compensation insurance, depending on the project and jurisdiction.