What is an example of a property loss exposure?

A property loss exposure refers to the potential risk of loss or damage to physical assets or property. Equipment is a tangible asset, and if it were to be damaged, lost, or stolen, it would represent a direct property loss exposure. This type of exposure can arise from various risks, such as fire, theft, or accidents.

In contrast, the other options represent different types of risks that do not pertain to physical property. Employee turnover relates to human resources and can affect the operational capacity of a business but does not involve a physical asset. Legal disputes involve a potential claim or liability scenario that does not result in physical loss of property, while market changes pertain to external economic conditions and factors affecting business operations or profitability rather than the physical property itself. Thus, the most fitting example of a property loss exposure among the choices provided is equipment.