What does "property damage" cover in a general liability policy?

"Property damage" in a general liability policy specifically refers to damage to tangible property that is owned by someone other than the insured. This coverage is essential because it protects businesses from financial losses that can arise when their operations cause damage to others' physical property. For instance, if a contractor accidentally damages a neighbor's fence while working on a construction project, the contractor's general liability policy would cover the cost of repairing or replacing that fence.

The focus on tangible property is important since it excludes intangible items such as intellectual property or reputational harm. This is why the other options are not correct; they either specify types of damage that do not align with the definition of property damage under liability coverage or limit the scope of what property damage actually includes.