New York Insurance Exam Practice Question
Which type of insurance covers damage to a business's property?
Correct Answer: B
Rationale: Property insurance specifically covers damage to a business's physical assets, such as buildings, equipment, and inventory, protecting against risks like fire, theft, and vandalism.
Liability insurance (A) protects against claims of injury or damage caused by the business to others, not the business's own property.
Workers' compensation insurance (C) provides coverage for employee injuries on the job, focusing on medical expenses and lost wages rather than property damage.
Business interruption insurance (D) compensates for lost income due to a disruption in operations but does not cover the physical damage to property itself.
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