Other Than Life (OTL) Practice Exam

Which of the following is typically covered under most business property policies?

1. Fire only

2. Extended coverage

3. All risks

4. Limited perils

The correct answer is: Extended coverage

In the context of business property policies, coverage often includes a range of risks beyond just fire. Extended coverage is essential because it typically encompasses not only fire damage but also additional specific perils such as theft, vandalism, and natural disasters that could affect the property. Most business property policies provide this extended coverage to ensure that businesses are protected against a wider array of potential losses, which is crucial for safeguarding assets and maintaining operations. It reflects a comprehensive approach to risk management, acknowledging that businesses face various threats beyond just fire. This is a standard feature in business property policies, contrasting with basic fire coverage, which would leave a business vulnerable to many other risks.