What role do deductibles play in commercial property claims?

Deductibles in commercial property claims serve the primary purpose of reducing the insurer's financial liability. When a policyholder experiences a loss, the deductible represents the amount that the policyholder must pay out-of-pocket before the insurance coverage kicks in. This structure incentivizes policyholders to be more diligent in managing risks and potentially reduces the number of small claims made, as policyholders might choose to cover minor losses themselves.

By shifting a portion of the financial responsibility back to the policyholder through deductibles, insurers can maintain more stable premium rates and manage their risk exposure more effectively. This is why the choice of focusing on reducing the insurer's financial liability is the most accurate answer regarding the role of deductibles in commercial property claims.

Other options, such as increasing the amount of coverage available or providing additional coverage options, do not apply directly to the nature of deductibles. Deductibles inherently act as a threshold for claims, rather than expanding coverage. Additionally, covering legal fees for claims typically falls under liability insurance provisions rather than being a core function of deductibles in commercial property policies, making these alternatives less relevant in this context.