What does business interruption insurance cover?

Business interruption insurance is specifically designed to protect businesses from the financial impact of unforeseen events that disrupt their operations. This type of insurance covers lost income and ongoing expenses when a business is unable to operate due to specific covered events, such as natural disasters, fires, or other catastrophic incidents that result in property damage.

By compensating for the income lost during the interruption and covering necessary operating expenses like rent, utilities, and payroll, this insurance helps businesses maintain their financial stability while they recover and rebuild after a disruptive event. This coverage can be crucial for businesses that rely on consistent revenue to meet their financial obligations, allowing them to sustain operations and prepare for eventual resumption of normal activities.

The other options provided address different types of coverage: repairing property, liability for workers, and employee health insurance, none of which pertain to the specific function and purpose of business interruption insurance. Therefore, the coverage of lost income and expenses when a business cannot operate is what defines business interruption insurance, making it the correct answer.