Which circumstance would not typically be covered by insurance?

Lost revenue due to falling demand is an example of a situation that typically would not be covered by insurance. Insurance policies are designed to manage specific risks and unforeseen events, such as physical damage to property (like theft or fire) or liabilities arising from accidents (such as customer claims).

In contrast, lost revenue due to falling demand is a risk that businesses face routinely and is often considered a part of normal operational risk rather than an insurable risk. This type of financial loss is usually influenced by market conditions, competition, and consumer preferences, which can be anticipated and managed through strategic planning rather than covered by insurance.

Thus, insurance typically does not cover losses resulting from shifts in demand or changes in market dynamics, which are external factors that are out of a business's control, unlike tangible losses or liabilities, which are specifically insurable events.