What does property insurance cover?

Property insurance specifically covers physical assets against loss or damage, which is crucial for businesses and individuals alike. This type of insurance is designed to protect tangible property, such as buildings, equipment, and inventory, from various risks such as fire, theft, vandalism, and certain natural disasters. By providing financial reimbursement for the repair or replacement of these physical assets, property insurance helps policyholders avoid significant financial loss due to unforeseen events.

In contrast, the other options refer to different types of coverage that are not classified as property insurance. Liabilities related to business operations address potential legal claims against a business, while health-related expenses for employees are covered under health insurance or employee benefits plans. Income loss due to business interruption typically falls under business interruption insurance, which compensates for lost income when a business cannot operate due to a covered event. Understanding the specific scope of property insurance is essential for effective risk management and asset protection.