What does a master policy typically cover in the insurance sector?

A master policy is a type of insurance that covers a group of individuals or entities under a single policy umbrella. In the context of the provided choices, the correct answer relates to private medical insurance, which is often structured as a master policy to cover multiple employees in a corporate environment or members of an organization. This is particularly common in corporate health plans, where the employer provides medical coverage to its employees under one comprehensive policy.

Private medical insurance as a master policy allows for efficiencies in administration, easier management of benefits, and potentially lower costs due to the collective nature of the coverage. It also ensures that the insurance provider can manage risk more effectively by pooling resources and claims from a larger group.

In contrast, home and auto insurance, liability insurance for businesses, and travel insurance typically operate on an individual basis for specific risks associated with personal property, business operations, and travel-related incidents, respectively. These do not usually lend themselves to the structure of a master policy aimed at providing coverage for a broad group.