What is the primary purpose of commercial property insurance?

The primary purpose of commercial property insurance is to protect businesses against loss or damage to their physical assets. This type of insurance covers various types of property, including buildings, equipment, inventory, and other physical assets that a business relies on to operate. By safeguarding these assets, businesses can ensure continuity and financial stability in the event of unforeseen incidents such as fires, theft, or natural disasters that could result in significant financial losses.

Other options, such as providing health coverage for employees or covering liabilities incurred during business operations, relate to different types of insurance. Health coverage pertains to employee benefits and is not associated with property insurance. Similarly, liability coverage addresses legal obligations and damages resulting from business operations, but it is distinct from protecting physical assets. Lastly, insuring against employee theft specifically targets a particular risk, whereas commercial property insurance encompasses a broader range of physical property protections necessary for business operations. Thus, the focus of commercial property insurance is well-defined in its role of protecting physical assets essential to a business's functioning and success.