What is the primary purpose of Commercial Property Insurance?

The primary purpose of Commercial Property Insurance is to protect businesses from financial loss due to damage or destruction of their physical assets, such as buildings, equipment, and inventory. This insurance helps ensure that a business can recover from incidents like fires, storms, theft, or vandalism.

While covering loss of business income is part of what this insurance can address, it is crucial to understand that the primary focus is on safeguarding the tangible property itself, which is essential for operational continuity. By covering property damages, this insurance also indirectly protects revenue streams, allowing businesses to continue operating and generating income amidst unforeseen disruptions.

Other options pertain to different aspects of business risk management. Covering medical expenses for employees relates to workers' compensation insurance, liability protection pertains to general liability insurance, and insuring personal property against theft is typically associated with policies designed for personal property rather than commercial needs. Understanding this distinction highlights the specialized focus of Commercial Property Insurance on safeguarding business assets.