What type of insurance covers loss or damage caused by burglary and theft?

The correct choice, which is specifically Burglary and Theft Insurance, directly addresses the need for coverage against loss or damage that occurs as a result of theft or burglary. This type of insurance is designed to provide financial protection to businesses when items are stolen or when property is vandalized during a break-in. It typically covers both the stolen items and any damage inflicted on the property itself during the crime.

In a business context, having this insurance is crucial because burglars often target businesses, and the financial implications from such a loss can be significant. This insurance helps in mitigating those risks, ensuring that businesses can recover financially after such unfortunate incidents.

Other choices relate to different aspects of business operations or insurance. Business Owners Policies generally bundle various types of coverage but may not specifically highlight theft. Cash Method Accounting pertains to financial reporting instead of insurance matters, and Change Order Insurance relates to construction modifications rather than losses from theft. Therefore, none of them specifically focus on the protection offered against burglary and theft, which is why Burglary and Theft Insurance is the appropriate choice.