Michigan Builders License Full Practice Exam 2026

Comprehensive general liability insurance is commonly referred to as business insurance because it provides a broad range of coverage intended to protect businesses from various types of claims such as bodily injury, property damage, personal injury, and advertising injury. This type of insurance is essential for businesses to mitigate financial risks associated with lawsuits and claims arising from their operations.

While "commercial insurance" is a term that encompasses various types of business insurance, it is not specific enough to denote the comprehensive nature of general liability coverage. "Property insurance," on the other hand, specifically addresses damage to physical assets and does not include liability coverage, which is a key aspect of comprehensive general liability insurance. "General business liability" sounds similar but is not the standard term used in the industry; the correct terminology focuses on the comprehensive aspect. Therefore, "business insurance" captures the full intent and scope of comprehensive general liability insurance, making it the accurate term.