Which insurance protects against financial loss due to inability to conduct business?

Business interruption insurance is specifically designed to cover financial losses that a business may incur as a result of an inability to operate effectively due to unforeseen events. This type of insurance provides compensation for lost income and covers ongoing expenses, such as rent and utilities, during the time that a business is unable to operate.

This insurance is crucial for businesses that rely on continuous operation, as it helps mitigate the financial impact of interruptions caused by incidents like natural disasters, fires, or other events that may halt normal business activities.

In contrast, property insurance primarily covers damage to physical assets, such as buildings and equipment, while liability insurance protects against third-party claims for damages or injuries. Workers' compensation insurance, on the other hand, is designed to cover medical expenses and lost wages for employees who are injured on the job. While each of these types of insurance serves an important role, business interruption insurance is uniquely focused on protecting business income during periods of disruption.