What type of policy provides property and liability coverage for small businesses?

The type of policy that provides property and liability coverage for small businesses is a prepackaged policy specifically designed for that purpose. This option typically consolidates multiple forms of coverage into a single package, making it particularly advantageous for small business owners who may not have the resources or expertise to purchase separate policies for all their needs.

These prepackaged policies usually include essential coverages, such as property insurance to cover buildings and contents, liability insurance to protect against claims from customers or clients, and additional endorsements that might be relevant for specific types of small businesses. The convenience and cost-effectiveness of these packaged policies cater to the unique requirements of small businesses, which often face different risks compared to larger enterprises.

Other options focus on specific types of coverage or policies that do not holistically address both property and liability needs for small businesses. This highlights why the selected answer is the most suitable, as it encapsulates the broad and necessary protections small businesses typically require.