What is typically included in business interruption coverage?

Business interruption coverage is designed to compensate an insured business for lost income during periods when it is unable to operate due to a covered event, such as fire or natural disaster. This type of coverage helps businesses recover from financial losses incurred during the interruption, including ongoing expenses and lost profits.

The focus of business interruption coverage is not on property damage alone, nor does it involve personal liability or workers' compensation, which are separate types of insurance that address different risks and responsibilities. Property damage coverage addresses the physical damages to the business's location and assets, but it does not extend to the income lost while repairs are made. Personal liability coverage pertains to legal responsibility for injuries or damages to third parties, and workers' compensation covers employee injuries that occur while on the job, neither of which relate directly to the business's operational interruptions and the accompanying loss of income.