What does earthquake coverage protect against in commercial property insurance?

Earthquake coverage in commercial property insurance specifically protects against losses that directly result from earthquake events. This type of coverage is essential for businesses located in seismically active regions where the risk of earthquakes is significant.

When an earthquake occurs, it can cause substantial damage to buildings, equipment, inventory, and other property. The coverage is designed to provide financial support to businesses to recover from such devastating events, which standard property insurance policies may not cover.

Other options do not relate to earthquake coverage. Loss from theft relates to property crime, damage from flooding pertains to water-related incidents, and vandalism and riots refer to civil disturbances. Each of these types of losses typically requires different coverage. Thus, the focus of earthquake coverage is solely on the specific damages and losses resulting from seismic activity, making it a critical component of a comprehensive commercial property insurance plan for those at risk.