Property and Casualty Insurance Practice Exam

What type of insurance provides coverage for a businessowner's real and business personal property?

1. General Liability Insurance

2. Commercial Property Insurance

3. Workers' Compensation Insurance

4. Health Insurance

The correct answer is: Commercial Property Insurance

Commercial Property Insurance is the correct type of insurance that provides coverage specifically for a business owner's real and business personal property. This coverage is designed to protect against risks such as fire, theft, vandalism, and other hazards that could damage the physical assets of a business. Real property refers to the actual physical premises owned by the business, including buildings and land, while business personal property encompasses items such as equipment, inventory, furniture, and supplies that are owned by the business but not classified as real estate. Commercial Property Insurance ensures that these essential business assets are financially protected against loss or damage, enabling business continuity and recovery in the event of an unforeseen incident. The other options listed do not provide this specific type of coverage. General Liability Insurance focuses on protecting a business from liability claims for bodily injury or property damage caused to third parties, not the protection of business-owned property itself. Workers' Compensation Insurance covers medical expenses and lost wages for employees injured on the job, which is unrelated to property coverage. Health Insurance provides coverage for medical expenses related to personal health, again not relevant to business-owned property.