Final answer:
Key person insurance is designed to protect companies from financial loss due to the death or disability of a critical employee, ensuring operational continuity (B).
Step-by-step explanation:
Insurance that protects companies against financial loss on the death or disability of a valued employee is Key person insurance. This type of insurance helps ensure that a company can continue operating without significant financial disruption in case a pivotal member of the team is no longer able to contribute to the business due to death or disability.
It is different from other types of insurance such as Liability insurance, which protects against claims of negligence, Property insurance, which covers physical assets, and Workers' compensation, which provides benefits to employees injured on the job.