The insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood or fire is called

• A. Property insurance.
• B. Casualty insurance.
• C. Life insurance.
• D. Liability insurance.

Answer: (B)

Casualty insurance covers losses from unexpected events that affect a business, paying monetary benefits to help recover from what happened. It’s a broad category that includes protections against damage to property from perils like fire or flood, and it can also encompass other non-life exposures tied to the business. In this framing, the emphasis is on indemnifying the business for financial losses caused by such perils, helping with repairs, replacement, and related expenses. Life insurance is for individuals, not business losses. Liability insurance protects against legal claims from others, not the direct damage to the business’s own property. Property insurance targets the physical assets specifically, whereas casualty is the broader term that encompasses these loss-reducing protections for unforeseen events.