What type of loss is typically the basis for an insurance claim?

• A. Net profit loss
• B. Operational loss
• C. Bodily injury or property damage
• D. Market loss

Answer: (C)

The correct answer focuses on bodily injury or property damage as the primary types of loss that typically lead to insurance claims. Insurance is designed to provide financial protection against unforeseen events that cause harm to people or damage to their property.

When individuals or businesses file claims, they generally seek compensation for physical injuries that they or others have sustained (bodily injury) or for damage to tangible assets like vehicles, buildings, or personal belongings (property damage). These losses trigger the insurance policy to respond and provide coverage according to the terms and conditions outlined in the policy.

Other types of losses, like net profit loss, operational loss, or market loss, while they can have significant implications for businesses or individuals, usually do not fall under the standard coverage of most insurance policies. These types of losses are often related to business performance or economic conditions rather than direct physical damage or injury.

Therefore, understanding that bodily injury or property damage is the foundation for most insurance claims helps differentiate it from other types of financial setbacks businesses may face.