Under what condition would an insurer expect to pay for business income losses?

An insurer would expect to pay for business income losses primarily when a business suspends operations because of a direct loss caused by a covered peril. This provision is designed to protect businesses from the financial impact of lost income during the period of interruption caused by events like fire, vandalism, or severe weather damage that directly affects the operational capacity.

Business income coverage typically helps restore lost income during the time it takes to repair or replace the damaged property and to resume business operations. This type of coverage is critical for businesses, as it allows them to manage ongoing expenses like payroll and fixed costs while they recover from the incident that caused the operational halt.

In contrast, other options such as theft or intentional damage may not be covered under standard business income provisions, depending on the terms of the policy and exclusions. While certain natural disasters might trigger coverage, it ultimately depends on whether the specific event resulted in direct damage to the property, leading to the suspension of operations.