A Businessowners policy would cover which of the following?

The correct choice illustrates the protection offered by a Businessowners policy, which is designed to cover various liabilities a business might face, including advertising-related injuries. In this case, if the insured is sued for injury to a competitor caused by one of their advertisements, this fits within the realm of liability coverage typically found in a Businessowners policy. Such policies often include general liability coverage, which protects the insured from legal claims arising from injuries or damages that happen as a result of their business activities, including those arising from advertising.

In contrast, the other scenarios presented involve different types of risks that may not be covered under a standard Businessowners policy. A contract signed with a competitor regarding advertising would typically be a legal matter outside the scope of property or liability insurance coverage. Employee injuries would normally be addressed by workers' compensation insurance rather than a Businessowners policy. A product recall due to a mechanical imperfection is related to product liability issues, which may also not be fully covered under a standard Businessowners policy without specific endorsements. Thus, option D aligns directly with the liability coverage aspect of a Businessowners policy, making it the correct answer.