A business interruption policy is designed primarily to cover a:

Business interruption insurance is specifically designed to cover the loss of profits that a business suffers due to an interruption in its operations, typically caused by events such as fire, storm damage, or other covered perils that lead to physical damage to the property. When a business must halt operations due to such events, it may continue to incur ongoing expenses, such as rent and payroll, but will not be generating revenue. The policy compensates for this loss of income, ensuring that the business can maintain its financial stability and cover its operational costs during the period of interruption.

While other options like loss of inventory, liability claims, and physical damage to property pertain to different aspects of business insurance coverage, they are not the primary focus of a business interruption policy. Loss of inventory relates to property insurance, liability claims pertain to liability insurance, and physical damage to property is typically covered under a property insurance policy. Hence, the primary intent of business interruption insurance is to safeguard against loss of profit, allowing businesses to recover after experiencing a disruption in their operations.