What does property coverage typically provide coverage against?

Property coverage is designed to protect against direct losses affecting real property and business personal property. This includes damage or destruction of physical assets such as buildings, equipment, inventory, and other tangible items that a business owns.

When an insured event occurs, such as a fire, storm, or theft, property coverage helps to cover the costs associated with repairing or replacing these physical items. This is crucial for businesses, as it enables them to recover assets that are vital to their operations and continue their activities after an incident.

In contrast, indirect losses related to business operations, losses due to employee theft, or potential future profits loss are not covered under standard property coverage. Instead, these types of losses would typically require separate forms of insurance, such as business interruption insurance or fidelity bonds, designed to handle those specific risks.