Which insurance covers the cost of damages due to a fire in a commercial building?

The coverage for damages resulting from a fire in a commercial building falls under property insurance. This type of insurance provides financial protection against risks such as theft, fire, and certain other hazards that can cause physical damage to buildings and their contents. Property insurance is specifically designed to cover the loss or damage to tangible assets that a business owns, including commercial properties.

In this scenario, property insurance would reimburse the policyholder for the costs associated with repairing or replacing the damaged structure and any affected contents, making it essential for businesses that want to safeguard their physical assets against fire-related losses. This type of coverage is critical in ensuring that a business can continue to operate after experiencing a significant loss due to fire.

The other types of insurance listed are designed for different purposes. For instance, professional indemnity insurance covers liability for professional negligence, while business interruption insurance compensates for loss of income due to events that disrupt business operations, such as a fire, but does not cover the physical damage itself. Employers' liability insurance is focused on protecting employers from claims by employees who suffer job-related injuries or illnesses, thus not relevant in the context of property damage from fire.