Also known as: property damage liability · PD coverage
The General Liability coverage that pays when your business physically damages someone else's property.
Property Damage liability is one of the two core triggers of a General Liability policy (alongside bodily injury). It covers physical injury to, or loss of use of, tangible property belonging to a third party that your business causes, such as damaging a client's equipment on a job site or a landlord's premises. It does not cover damage to your own property (that is commercial property insurance) or purely financial losses with no physical damage (that is professional liability / E&O).
It is the part of a General Liability policy that pays when your business physically damages a third party's property, or causes them to lose the use of it, for example damaging a client's equipment or a landlord's space. It is one of the two core GL triggers, alongside bodily injury.
No. Property damage liability covers damage to other people's property that your business causes. Damage to your own equipment, inventory, or space is covered by commercial property insurance, which is a separate coverage.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.