What is typically included in property insurance coverage?

Property insurance coverage primarily protects against physical damage to tangible assets. This includes buildings, equipment, inventory, and other forms of property that a business owns. The essence of property insurance is to provide financial reimbursement to the policyholder in the event of damage or loss due to covered perils such as fire, theft, and natural disasters.

In this context, while income loss and employee-related liabilities might be covered under different types of insurance—such as business interruption insurance or workers' compensation, respectively—they do not fall under the traditional scope of property insurance. Similarly, legal fees incurred in disputes would typically be addressed through liability insurance or specialized legal expense insurance, rather than property coverage. Therefore, the focus on protection from physical damage makes the correct answer pertinent to understanding the core benefits of property insurance.