What type of insurance covers loss of income due to business interruptions?

Business interruption insurance specifically addresses the loss of income that a business experiences due to disruptions that prevent it from operating normally. This type of insurance is essential for businesses that rely on continuity of operations, as it provides financial support during periods of halted activities, allowing them to cover operating expenses and maintain payroll while they recover.

Property insurance primarily covers physical assets like buildings and equipment against damages due to events such as fire or theft, but it does not cover income lost due to interruptions in business operations. General liability insurance protects a business from claims of bodily injury or property damage caused by the business's operations, while workers' compensation insurance provides medical benefits and wage replacement to employees who are injured on the job. However, neither liability nor workers' compensation addresses income loss due to business disruptions, further emphasizing the unique role that business interruption insurance plays in safeguarding a company's financial stability during challenging times.