What type of insurance policy typically includes coverage for loss of business income?

Business interruption insurance is specifically designed to cover the loss of income that a business may experience due to a disruption in its operations, often caused by a covered event such as a fire, natural disaster, or other incidents that damage the business premises. This type of coverage ensures that the business can maintain its financial stability during periods when it is unable to operate, typically compensating for lost profits and covering ongoing expenses like rent and payroll.

In contrast, general liability insurance focuses on protecting businesses from claims of bodily injury or property damage that they may cause to third parties. Property insurance covers physical damage to the business’s property and its contents but does not directly address the income lost during a disruption. Workers’ compensation insurance provides medical and wage benefits to employees injured in the course of their employment, without covering business income losses. Understanding the distinct purposes of these types of coverage clarifies why business interruption insurance is the essential policy that addresses income loss specifically.