CNX-001: CompTIA CloudNetX

By CompTIA · Question Mode

QuestionQ49

Network security

A company is expanding its operations and opening a new facility. The executive leadership team chooses to buy an insurance policy that covers the cost to rebuild the facility if a natural disaster occurs. Which of the following best describes the team's decision?

Explanation

Insurance transfers the financial risk of rebuilding a damaged facility from the company to the insurance provider, subject to the policy’s terms and coverage limits.

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