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Business liability insurance explicitly covers three major damages caused to the third party by the policy holder. Covers include compensatory damages, general damages and punitive damages. In case of compensatory damage claim, financial losses of the third party due to an injury will be covered. In general damage claims, non monetary losses such as mental torture, pain and suffering by the third party are covered. Punitive damages are additional charges or penalties, made by the third party, which the policy holder should pay.

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Costs covered by business liability insurance policy

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