Final answer:
The insurance policy designed to protect against the risks of providing goods and services is liability insurance. It requires regular premium payments and offers financial protection in case the insured is found liable for damages or injuries.
Step-by-step explanation:
The insurance policy that provides businesses and individuals with protection from the risks associated with providing goods and services to the public is known as liability insurance. This type of insurance is designed to safeguard against financial loss in the event that the insured party is found legally liable for property damage or personal injury to another party. Insurance companies calculate premiums based on the probability of such events occurring within a group of insured entities.
Various types of liability insurance exist, including general liability insurance, product liability insurance, and professional liability insurance. Each of these is tailored to cover specific risks that businesses might face in interacting with customers or providing services. Regular payment of premiums to the insurance company is required to maintain coverage, and in exchange for this payment, the insurance provides a safety net, offering financial protection and peace of mind.