Final answer:
The term that describes a single limit of insurance applied to all items of a property type is a Blanket limit. It contrasts with specific limits, aggregate limits, and occurrence limits by offering a more flexible coverage option for businesses with multiple properties or types of assets.
Step-by-step explanation:
The term you're looking for that describes a single limit of insurance applied to all items of that property type is B) Blanket limit. This means that one limit of insurance covers multiple properties, or different types of property at one location, or similar types of properties at multiple locations. For instance, a business might use a blanket limit to insure all of its office equipment, regardless of which office the equipment is in. This contrasts with a specific limit, which would apply to a specific item or type of property, and an aggregate limit, which puts a cap on the total payouts during a policy term for all losses. Lastly, an occurrence limit caps the amount insurers will pay for a single loss or event.