What kind of insurance covers lost income due to business interruptions?

Business Interruption Insurance is specifically designed to cover lost income that a business suffers when it is unable to operate due to an unforeseen event, such as a fire, natural disaster, or other disruptive incidents. This type of insurance helps businesses maintain their financial stability during periods when operations cannot continue. It typically covers lost income for the duration of the disruption, along with ongoing expenses such as rent and utilities.

The focus of Business Interruption Insurance is primarily on the revenue loss that occurs during an interruption of the business operations, which distinguishes it from other types of insurance. While Property Insurance may cover the physical damage to the business property, it does not address the income loss incurred during the repair or recovery phase. Similarly, Liability Insurance protects against claims for damages or injuries to third parties, while Workers' Compensation Insurance covers medical expenses and lost wages for employees who are injured on the job. Thus, Business Interruption Insurance is the only option that directly addresses the financial impact of halted business activities.