What type of coverage typically doesn't include loss of income due to business interruption?

The chosen answer highlights that property insurance generally does not cover loss of income due to business interruption. Property insurance primarily provides financial protection against physical damage to property and tangible assets such as buildings, equipment, and inventory. It is designed to reimburse the policyholder for repairs or replacement costs associated with the insured property.

However, when a business suffers a loss of income due to an event that disrupts operations, such as fire or natural disaster that affects the property, property insurance alone does not extend to losses resulting from interrupted business activities. Business Interruption insurance, on the other hand, is specifically designed to replace lost income and cover ongoing expenses during the period that the business is unable to operate normally.

In contrast, liability insurance focuses on protecting against claims and lawsuits that arise from injuries or damages to third parties, so it also does not support loss of income. Workers’ Compensation insurance addresses employee injuries and medical expenses resulting from workplace accidents, but similarly does not include coverage for loss of business income.

The distinction lies in the specific focus and purpose of each insurance type, underscoring why property insurance would not suffice for losses related to business interruption.