Which type of insurance covers damage to a business's physical assets?

Property insurance is specifically designed to cover damage to a business's physical assets, such as buildings, equipment, inventory, and other tangible property. This coverage protects businesses against risks such as fire, theft, vandalism, and natural disasters, ensuring that they can repair or replace their physical assets when necessary. By safeguarding these essential components, property insurance plays a critical role in a business's overall risk management strategy.

In contrast, general liability insurance primarily protects businesses against claims of bodily injury or property damage caused to third parties, rather than covering physical assets owned by the business itself. Auto liability insurance focuses on coverage for vehicles owned by the business and the liability arising from their use, while workers' compensation insurance provides coverage for employee injuries and illnesses related to their job. These other types of insurance serve different purposes and do not directly address the protection of a business's physical assets. Thus, property insurance is uniquely suited for this specific coverage need.