What type of loss does business interruption insurance cover?

Business interruption insurance specifically provides coverage for lost income that occurs when a business is unable to operate due to a covered event, such as a disaster that causes physical damage to its property. This type of insurance is crucial for businesses as it helps bridge the financial gap during the period of interruption, allowing them to maintain their operations and manage ongoing expenses despite not generating income.

While physical damage to property is indeed covered by property insurance and not specifically by business interruption insurance, lost income itself is the central concern of business interruption coverage. Theft of business equipment falls under general property insurance or crime insurance but does not specifically address the operational halts that lead to lost revenue. Employee injuries are typically covered under workers' compensation and do not relate directly to business income loss. Thus, the focus of business interruption insurance is clearly on the financial impacts of a shutdown rather than the physical or theft-related losses.