Final answer:
Personal and Advertising Injury coverage is the type of CGL coverage that indemnifies an insured party for damages resulting from a libel claim.
Step-by-step explanation:
The correct type of CGL coverage that would indemnify an insured party for damages resulting from a libel claim is Personal and Advertising Injury coverage (Option C).
Personal and Advertising Injury coverage is a type of liability insurance that protects against claims of libel, slander, defamation, false arrest, invasion of privacy, copyright infringement, and other personal and advertising injuries. It typically covers legal defense costs and damages awarded to the injured party.
For example, if a business is sued for libel by a competitor due to false statements made in an advertisement, Personal and Advertising Injury coverage would provide coverage for legal expenses and any damages awarded to the competitor.