What type of insurance provides reimbursement for lost profits due to business interruptions?

Business Interruption Insurance is specifically designed to cover the loss of income that a business suffers after a disaster. This type of insurance provides reimbursement for lost profits during the period when business operations are interrupted and can help cover ongoing expenses, such as rent or payroll, that continue even when business is not being conducted.

This type of insurance is critical for businesses that face potential interruptions from various causes like natural disasters, fires, or other incidents that could disrupt standard operations. It allows companies to maintain a level of financial stability while they work to recover and resume normal operations.

In contrast, Property Insurance primarily covers physical assets, such as buildings, inventory, and equipment, against risks like theft or damage but does not cover lost income. Liability Insurance protects against legal liabilities when claims are made due to negligence or harm caused to others, which is unrelated to business interruption. General Insurance is a broad term and does not specifically pertain to aspects such as business interruption or income loss.