What do commercial property coverage typically apply to?

Commercial property coverage typically applies to both real property and business personal property. Real property refers to physical structures and buildings that a business owns, such as offices, warehouses, and factories. This coverage is essential for protecting the investments that businesses have made in their physical premises.

On the other hand, business personal property includes movable items like equipment, inventory, furniture, and machinery that are used in the operation of the business. This aspect of coverage ensures that businesses can recover losses related to their tangible assets, which are crucial for day-to-day operations.

Understanding this distinction is vital for anyone involved in commercial insurance, as it helps ensure that businesses have adequate protection against potential risks including fire, theft, vandalism, and natural disasters. The other options either fail to capture the full scope of what commercial property coverage encompasses or mistakenly narrow it down to specific types of property that do not reflect the broader applicability present in option B.