When would a company opt for "business interruption insurance"?

A company would opt for "business interruption insurance" specifically when there is a risk of operational halts due to disasters. This type of insurance is designed to protect businesses from loss of income that can occur when operations are temporarily disrupted due to unforeseen events such as natural disasters, fires, or other emergencies. The coverage provides financial support by compensating for lost revenue and ongoing expenses during the downtime, helping businesses to recover and maintain their financial stability.

In contrast, while economic downturns may impact a company's performance, they are not typically covered by business interruption insurance, as this insurance is focused on specific operational disruptions rather than market conditions. Expanding into new territories might come with its own risks, but it is not a primary factor necessitating business interruption insurance. Similarly, planning employee training programs does not relate to the coverage provided by this type of insurance, as it is not concerned with operational disruptions caused by external events.