What type of insurance would cover business interruption losses?

Business income insurance specifically addresses coverage for losses resulting from a business interruption. When a business experiences an event that disrupts its operations, such as a fire, natural disaster, or other emergencies, business income insurance is designed to compensate the business for lost income during the period of restoration. This type of insurance can cover fixed costs and ongoing expenses, ensuring that the business can continue operating and fulfilling its obligations even in times of disruption.

In contrast, general liability insurance primarily protects businesses from claims related to bodily injury, property damage, and other liabilities that may arise from their operations, but it does not cover loss of income. Property insurance covers damage to physical assets; however, it usually does not include coverage for lost income during repairs or rebuilding. Errors and omissions insurance, meanwhile, is tailored for professionals to protect against claims of negligence or mistakes in service provision and does not address business interruption losses. Thus, business income insurance is the only option that directly provides coverage for losses incurred due to interruptions in business operations.