Business Interruption
Definition:
Coverage that reimburses lost income and operating expenses when a business cannot operate due to a covered loss.
Explanation:
This is most relevant for commercial property owners or landlords. It ensures the policyholder can continue to meet financial obligations while the property is being repaired.
Example:
If a fire damages a rental building and tenants must move out, business interruption coverage may pay the lost rental income.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.