What does 'business income' or 'business interruption' coverage provide?

Business income (sometimes called business interruption) coverage replaces lost net income and continuing operating expenses while a business is unable to operate due to a covered property loss. Example: a restaurant fire damages the kitchen; the restaurant cannot operate for three months while repairs are made. Property coverage pays for kitchen repairs; business income coverage pays for the lost profit and the continuing expenses (rent, salaries of key staff, loan payments) the business must keep paying. Coverage typically begins after a brief waiting period (24-72 hours) and continues until business operations are restored or the policy limit is exhausted. Extra Expense coverage pays additional expenses incurred to continue operations (e.g., temporary location rent). Business income coverage is critical because the indirect financial impact of a major property loss often exceeds the direct property damage.