What does business interruption insurance provide coverage for?

Business interruption insurance specifically offers coverage for the loss of income resulting from a covered event that disrupts normal business operations. This type of insurance is crucial for businesses because it helps ensure they can maintain some level of financial stability during periods when they cannot operate, such as after a fire, flood, or other devastating incidents. The coverage can help offset ongoing expenses and provide financial support until the business can resume normal operations.

In contrast, the other options pertain to different types of insurance. Damage to physical assets caused by natural disasters is typically covered under property insurance rather than business interruption insurance. Liability claims arising from business operations are addressed through general liability insurance, which protects businesses against claims of negligence or harm. Employee injuries while on duty are covered under workers' compensation insurance, which provides benefits to employees injured in the course of their employment. By focusing specifically on lost income due to operational disruptions, business interruption insurance plays a distinct and vital role in a comprehensive business insurance strategy.