In which scenario would Loss of Income coverage be beneficial?

Loss of Income coverage is specifically designed to protect businesses from the financial impact of disruptions caused by covered perils. This type of coverage is essential when business operations are interrupted due to circumstances such as fire, natural disasters, or other insured events. During these periods of interruption, the business may suffer a reduction in income, as it cannot operate normally or serve its customers. Loss of Income coverage provides compensation for the lost revenue, enabling the business to meet ongoing expenses, such as payroll and lease payments, despite the temporary closure or disruption in operations.

In contrast, selling a business (option A), having business assets stolen (option B), or hiring new employees (option D) do not directly involve interruptions in business operations due to a covered peril and therefore do not benefit from Loss of Income coverage. These scenarios might be covered under different types of insurance or policies but not Loss of Income coverage.