To protect the firm against the loss of earnings if the business operations are disrupted due to fire,accident,or some other insured peril,a firm would purchase:
A)property insurance.
B)key personnel insurance.
C)business liability insurance.
D)business interruption insurance.

Question

Quizplus · Accepted Answer

Property insurance would cover damage to the physical assets of the firm, but it wouldn't cover lost income from business interruptions. Key personnel insurance covers losses due to the death or disability of a key employee, but it wouldn't cover losses from fire, accident, or other perils. Business liability insurance covers losses due to lawsuits or damages caused by the firm, but it wouldn't cover losses from business interruptions. Therefore, the best choice for protecting against the loss of earnings due to business interruption is business interruption insurance.

To Protect the Firm Against the Loss of Earnings If