Which type of insurance policy would cover loss of income due to inability to operate a business?

Business interruption insurance is designed specifically to cover the loss of income that a business suffers due to a disruption in operations, typically caused by a covered event such as a fire, natural disaster, or other unforeseen circumstances. This type of insurance helps replace lost income and can cover ongoing expenses, enabling the business to maintain operations during a recovery period. By ensuring that the business can meet its financial obligations, business interruption insurance provides crucial financial support in times of crisis.

General liability insurance protects businesses from claims related to bodily injury or property damage caused by the business's operations, products, or accidents on the premises, but it does not cover lost income. Property insurance covers the physical assets of a business, such as buildings and equipment, against damage or loss but does not address income loss directly. Workers' compensation insurance provides benefits to employees who are injured or become ill as a result of their job but does not cover the income loss of the business itself. Thus, for the specific need of covering income loss due to a business interruption, business interruption insurance is the appropriate choice.