Under which condition might an insurer deny coverage in a commercial property policy when a business has been closed for three months due to injury?

The correct choice pertains to the concept of vacancy in commercial property policies. When a business has been closed for an extended period, typically more than 60 days, the insurer may classify the property as "vacant." Vacancy often impacts coverage because most commercial policies include provisions that limit or exclude coverage in cases where the property is unoccupied or substantially vacant.

Insurers view vacant properties as having a higher risk for loss due to concerns over maintenance, security, and potential for vandalism or other claims. When a property is deemed vacant, the insurer may refuse to cover certain types of losses, arguing that the lack of occupancy has increased the chances of loss or damage. It's crucial for businesses to maintain occupancy or notify their insurer of any changes to avoid potential gaps in coverage.

In contrast, the other options deal with different aspects of insurance coverage. Occupancy refers to the use of the property, loss of income relates to business interruption insurance, and liability coverage is concerned with claims due to injuries or damages to third parties. While all these factors are important in commercial insurance, they do not directly relate to the question of coverage denial due to business closure and the implications of vacancy.