What kind of incidents does Business Interruption Coverage generally cover?

Business Interruption Coverage is specifically designed to address the financial impact that a business suffers due to interruptions caused by specific incidents, often resulting from covered perils. This type of coverage provides compensation for loss of income when a business must suspend operations due to a disaster or an event that has led to physical damage to the property or other covered incidents. For example, if a fire damages a restaurant, leading to its closure and loss of customers, Business Interruption Coverage would cover the income lost during the period of closure.

In contrast, the other choices highlight different types of insurance needs. Injury-related claims pertain primarily to liability coverage dealing with bodily injury to others, general property damage typically involves coverage for physical damage to the business’s property itself, and employee conduct coverage relates to protecting the business against claims resulting from actions taken by employees that may lead to liabilities. None of these options directly address the core function of Business Interruption Coverage, which is focused on loss of income due to business closure resulting from covered damages or incidents.