What is business interruption insurance designed to cover?

Business interruption insurance is specifically crafted to compensate a business for lost income that occurs when operations are halted due to a covered event, such as a fire or natural disaster. This type of insurance is vital because it helps businesses recover financially during periods when they cannot operate as usual. By providing a safety net for lost revenue, it allows businesses to cover fixed expenses like rent, utilities, and payroll, ensuring they can remain solvent until they can resume normal operations.

The other options focus on different types of insurance coverage, but they do not address the primary purpose of business interruption insurance. For example, protecting physical assets against theft or providing funds for hiring additional staff are not the main functions of this insurance. Similarly, a policy that only covers property damage does not encompass the financial losses related to the interruption of business activities. Therefore, option A accurately represents the essence and intent of business interruption insurance.