What type of insurance provides coverage for businesses against risks such as fire, theft, and natural disasters?

Prepare for the Guidewire Business Analyst Test. Leverage flashcards and multiple-choice questions, each accompanied by explanations and hints. Ace your exam!

The type of insurance that provides coverage for businesses against risks such as fire, theft, and natural disasters is commercial property insurance. This insurance is specifically designed to protect a business's physical assets, including buildings, equipment, inventory, and other property, from various risks.

Commercial property insurance covers losses that can occur from events like fires and severe weather events, ensuring that businesses can recover and rebuild after such incidents. This type of coverage is essential for businesses as it mitigates financial loss associated with damage to property and allows them to maintain operations even after a disaster.

In contrast, the other types of insurance listed focus on different aspects of business risk. Commercial auto insurance covers vehicles used for business purposes, while general liability insurance protects against lawsuits or claims of bodily injury and property damage. Inland marine insurance typically covers goods in transit or specialized equipment, rather than providing broad protection for a business's property against disasters.

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