What type of insurance covers operational losses that could occur due to a covered hazard in a business?

Business Income coverage is designed to protect businesses from financial losses that occur when they are unable to operate normally due to a covered hazard, such as a fire or natural disaster. This type of insurance compensates the business for lost income during the time it takes to restore operations after a covered event. It generally covers lost revenue and certain expenses like payroll, ensuring that the business can maintain its financial obligations while it recovers.

This insurance is crucial for businesses because operational disruptions can lead to significant loss of income that would otherwise be generated during normal operation. By providing this coverage, it helps to mitigate the financial impact of unexpected events, allowing the business to keep running or to rebound quickly after an interruption.

In contrast, other forms of insurance listed do not serve the same purpose. General Liability Insurance protects against claims related to bodily injury or property damage caused by the business's operations or employees but does not cover loss of income. Commercial Umbrella coverage provides additional liability limits over primary policies but does not directly cover operational losses. Property Damage coverage safeguards tangible assets but again does not account for revenue losses due to business interruptions. Thus, Business Income coverage specifically addresses the issue of operational losses resulting from covered hazards.