Which of the following best describes "business interruption" insurance?

Business interruption insurance is designed to protect a business's income when its operations are interrupted due to a covered event, such as a natural disaster, fire, or other unexpected incidents. When such events occur, they can cause temporary closure or significant disruptions, leading to a loss of revenue. This type of insurance helps businesses recover lost income during the downtime, ensuring they can continue operating and meet their financial obligations even when they cannot generate revenue from their typical commercial activities.

This type of coverage is crucial for maintaining cash flow and helping businesses withstand financial difficulties that arise from unexpected events. It can cover various expenses, including fixed costs, payroll, and even temporary relocation costs if the business must move while repairs are being made.

The other options represent different aspects of insurance coverage that do not encapsulate the specific purpose of business interruption insurance. For example, coverage for physical damage deals with property damage, liability coverage addresses claims against the business for injuries or damages, and insurance against employee dishonesty involves protecting against losses from fraudulent acts by employees. Each of these is important in its own right but focuses on different risks that a business may face.