What type of insurance covers damages to another person's property that occurs on the insured's property?

Property Damage Insurance is specifically designed to cover damages that occur to another person's property as a result of incidents happening on the insured's property. This type of insurance protects the insured from the financial responsibility of repair or replacement costs that may arise if someone else's property is damaged while on their premises. It helps mitigate risks associated with accidents, ensuring that property owners are not excessively burdened by costs that could arise from such events.

In contrast, Fidelity Bonding is related to employee dishonesty and does not cover property damage. Workers Compensation provides benefits to employees who are injured on the job, focusing on medical expenses and lost wages rather than property damage. Bodily Injury Insurance deals primarily with injuries sustained by individuals rather than damage to their property. Therefore, Property Damage Insurance is the appropriate choice for coverage in the scenario described.