Which condition applies to the general liability insurance policy required for license holders?

The requirement for general liability insurance for license holders is focused on comprehensive protection against various risks associated with operating in the private security industry. The correct choice states that the insurance must cover bodily injury, property damage, and personal injury.

This comprehensive coverage is vital because it protects the licensed entity from claims that may arise from accidents causing physical harm to individuals (bodily injury), damage to property (property damage), and other non-physical harm that affects a person's reputation or emotional well-being (personal injury). By ensuring coverage in all these areas, the policy provides a safeguard against legal and financial repercussions that can stem from various incidents during the course of business operations.

In contrast, limiting coverage to just property damage, personal property only, or legal fees would not provide adequate protection for a business in this field. Such limitations might leave the business vulnerable to significant financial loss in the event of an incident involving injuries to clients or third parties or claims that don’t involve physical property damage at all. Hence, a broader coverage approach is essential for a license holder in the private security industry.