What is the difference between Premises liability and Operations liability?

• A. Premises liability arises from hazards on the insured's premises; Operations liability arises from the insured's activities away from the premises
• B. Premises liability arises from the insured's activities away from the premises; Operations liability arises from hazards on the insured's premises
• C. They are separate terms with no overlap
• D. Premises liability only covers property damage

Answer: (C)

Premises liability covers injuries or property damage that happen because of hazards or conditions on the insured’s own property. Operations liability covers injuries or damage that arise from the insured’s business activities away from the premises, such as work performed at a client site or activities conducted off-site. In most commercial policies these exposures are combined under Premises-Operations liability, and a single incident can involve both on-site hazards and off-site activities, so they do overlap in practice. Saying they’re completely separate terms with no overlap isn’t accurate. Premises liability includes bodily injury and property damage arising from premises hazards, not just property damage.