Ace the 2026 Property and Casualty Challenge – Insure Your Success!

Malicious prosecution claims are considered covered under business liability coverage because this type of insurance is designed to protect a business against lawsuits for allegations of wrongful acts that may arise during the normal course of operations. Malicious prosecution refers to situations where a business is wrongfully accused of initiating legal proceedings without a legitimate basis, which can lead to legal liability. Business liability policies typically provide coverage for various claims that could arise from the actions of the business or its employees, including those involving defamation, false arrest, and malicious prosecution.

Other options, while they may seem relevant, fall outside the typical coverage parameters of business liability insurance. For instance, slips and falls on the property are generally covered under premises liability, which specifically addresses injuries that occur on the business's property rather than a broader liability coverage. Lost wages of employees would be covered under workers' compensation insurance, which addresses job-related injuries and expenses but does not relate to business liability. Property damage to client assets typically is covered under a different type of insurance, such as a commercial property policy, rather than business liability coverage, which focuses more on liability arising from third-party claims due to the business’s operations or actions.