Which type of insurance covers losses incurred from not being able to continue a business due to unforeseen events?

Business interruption insurance is designed specifically to cover losses that arise when a business cannot operate due to unforeseen events, such as natural disasters, fires, or other major disruptions. It provides financial support to cover lost income during the period when the business is unable to function normally, ensuring that essential expenses can still be met even when revenue is temporarily halted.

Property insurance typically covers physical assets against risks such as theft or damage but does not account for loss of income due to business operations being halted. Contingency insurance may cover specific unexpected events but is not primarily focused on business income loss. Professional indemnity insurance protects professionals against claims of negligence or inadequate performance but, like property insurance, does not address business interruption issues. Thus, business interruption insurance is the most appropriate choice for covering losses related to the cessation of business operations.