Which is an insurance agreement that protects business assets from lawsuits?

Business liability insurance is designed to protect a business's assets from various potential lawsuits that may arise during normal operations. This type of insurance covers legal costs, expenses, and damages related to claims of negligence, property damage, or bodily injury that occur on the business premises or as a result of business operations.

It creates a safety net for businesses by ensuring that if a lawsuit is filed against them, they have coverage to help mitigate financial losses and protect their assets. This is crucial for maintaining a company's financial health and stability, as lawsuits can be costly and damaging to a business's reputation.

Other types of insurance, while also important, serve different purposes. For instance, professional liability insurance focuses on protecting professionals from claims arising from their professional services, while medical malpractice insurance specifically covers healthcare providers against claims of negligence in patient care. Bonding insurance, on the other hand, often relates to guarantees of performance in contractual obligations rather than direct liability for lawsuits. This distinction highlights why business liability insurance is the most appropriate choice for protecting assets from general lawsuits.