What does "business income coverage" typically protect against?

Business income coverage is designed specifically to protect a business against the loss of income that occurs when a covered peril causes damage to the property used in the business. This coverage kicks in during the period that the property is being repaired or replaced, helping to ensure that the business can continue to meet its operating expenses even while it is not generating income due to those repairs.

This type of coverage is crucial for businesses since a significant interruption can lead to overwhelming financial strain. It allows businesses to focus on getting back to normal operations without the added stress of lost revenue during the downtime. The aspect of business income coverage that is often highlighted is how it provides for ongoing expenses, such as payroll and rent, during the recovery period, making option B the correct choice.