Which type of policy covers loss of business income due to suspension of operations?

Business Interruption Insurance specifically covers the loss of business income that a company experiences due to a suspension of its operations, usually as a result of a covered peril, such as a fire or natural disaster affecting the business premises. This type of policy is designed to help business owners recover lost income during the time they are unable to operate, as well as cover certain expenses incurred during the interruption period. It allows businesses to maintain financial stability even when there is a temporary halt in their operations, supporting ongoing bills and salaries.

General Liability Insurance primarily protects against claims for bodily injury or property damage caused by business operations, rather than interruptions in business income. Property Insurance covers physical loss or damage to tangible assets, but does not address the income loss that may result from those damages. Workers' Compensation Insurance provides coverage for employee injuries or illnesses that occur due to their work duties, but it does not relate to business operations being suspended. Thus, Business Interruption Insurance is the dedicated policy that addresses the specific needs of businesses facing income loss due to operational halts.