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Identify the four coverages provided by most package policies:

a. Property damage
b. Liability
c. Business interruption
d. Crime

1 Answer

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Final answer:

The four coverages provided by most package policies are property damage, liability, business interruption, and crime, each designed to protect against distinct risks that individuals or businesses may face.

Step-by-step explanation:

Most package policies in the insurance market typically provide four coverages to protect individuals and businesses from various risks. The question is asking to identify these coverages, which are:

  • Property damage: This coverage pays for damage to or loss of the policyholder's property. Examples include damage from fire, flood, or theft.
  • Liability: This component provides protection if the policyholder is legally responsible for injuring another person or damaging their property.
  • Business interruption: This insurance covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
  • Crime: This coverage offers protection against losses resulting from business-related crimes such as theft, burglary, or fraud.
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