What type of coverage protects a business against interruptions due to a covered loss?

Business interruption insurance is designed specifically to help businesses recover from losses due to interruptions caused by covered events, such as natural disasters, fires, or other incidents that lead to downtime. This type of coverage helps ensure that the business can continue to pay operating expenses, such as rent and employee salaries, even while it is temporarily closed or cannot generate income due to the covered loss.

In contrast, property damage insurance focuses on covering physical damage to the property itself, liability insurance provides protection against claims for injuries or damage caused to others, and workers’ compensation insurance covers medical expenses and lost wages for employees who suffer work-related injuries. None of these alternative options address the specific need to protect a business's income and operational capacity during interruptions, which is why business interruption insurance is the correct solution.