A restaurant owner faces the chance that a kitchen fire destroys the building and the chance that a second location earns or loses money. An underwriter will consider only the fire exposure because:

Explanation

Insurers underwrite pure risk, where the only outcomes are a loss or no loss. The second location is a speculative risk because it can also produce a gain, and paying for that would turn insurance into an investment. Calling the earnings exposure a physical hazard confuses a tangible condition that raises the chance of loss with a business decision taken for profit.