What type of insurance cover would replace lost income due to a shop being closed after flooding?

Business interruption insurance is designed specifically to cover the loss of income that a business suffers as a result of interruptions to its operations, such as those caused by natural disasters like flooding. When a shop is closed due to flooding, business interruption insurance can compensate for the ongoing expenses and lost profits during the period in which the business cannot operate.

This type of insurance not only covers lost income but also may help with ongoing costs such as payroll and rent, ensuring that a business can stabilize and recover after a disruptive event.

In contrast, property insurance primarily covers damage to physical assets, such as the shop itself and its contents, but does not address the loss of income resulting from the inability to operate. Liability insurance provides coverage against claims arising from injury or damage to third parties, and contingency insurance typically refers to coverage for risks that could cause a certain event to occur, but it does not specifically relate to lost income due to business interruptions.