New York Insurance Exam Practice Question
Which type of insurance covers financial losses due to business interruption?
Correct Answer: C
Rationale: Business interruption insurance specifically addresses financial losses resulting from disruptions in operations, such as natural disasters or other unforeseen events. This type of insurance helps cover lost income and ongoing expenses during the period of recovery.
Option A, liability insurance, protects against claims of negligence or harm to others, not business operation disruptions. Option B, property insurance, covers physical damage to assets but does not compensate for income loss due to interruptions. Option D, workers' compensation insurance, provides benefits to employees injured on the job, unrelated to business income loss.
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