A policy that protects a company from damages to property belonging to someone other than that of the company is called what?

The correct answer is general liability insurance. This type of insurance is specifically designed to protect businesses from claims of bodily injury or property damage caused by the company’s operations, products, or accidents that occur on the business premises. It covers damages to property that belongs to third parties, which is why it is essential for companies to mitigate risks associated with claims and lawsuits.

General liability insurance provides a financial safety net that allows a business to operate without the constant fear of litigation. This coverage is particularly crucial for plumbing businesses, which may frequently encounter situations where property damage could occur due to their work.

While the other types of insurance mentioned serve important roles in overall risk management, they do not address the same scope of liability. Motor vehicle insurance is focused solely on vehicles used for business operations, property insurance pertains to damage to the company’s own assets, and workers' compensation insurance covers employee injuries but does not relate to third-party property damage. Thus, general liability insurance is the appropriate choice in this context.