Which events are typically covered by business interruption insurance?

Business interruption insurance is designed to provide coverage for loss of income that a business experiences due to a covered event that disrupts its normal operations. This type of insurance focuses on events specifically causing a temporary halt in business activities, allowing for the mitigation of financial losses that result from the interruption.

Covered events often include natural disasters, fires, or other incidents that damage the physical premises, making it impossible for the business to continue operating as usual. For example, if a storm causes severe damage to a retail store, business interruption insurance would cover the income lost during the period of repair.

Other options like medical emergencies, theft of company property, and employee accidents typically fall under different categories of insurance. Medical emergencies involving employees might be addressed through workers' compensation insurance. Theft could be covered under a commercial property policy, and employee accidents are generally covered through liability insurance or workers' compensation. Therefore, the focus on events preventing business operations is what makes the second option the correct answer regarding business interruption insurance.