Alberta General Insurance Level 1 Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Business interruption insurance is specifically designed to provide financial protection for businesses that experience a temporary cessation of operations due to a covered event, such as a natural disaster or a fire. This type of insurance helps to cover lost income during the period in which the business is unable to operate, as well as ongoing expenses, such as rent and payroll, that must be paid even when the business is closed.

In contrast, general liability insurance protects against claims of bodily injury or property damage caused by the business but does not address income loss. Property damage insurance focuses on covering the physical assets of the business, like buildings and equipment, rather than the income impact of being unable to operate. Workers' compensation insurance is designed to provide medical benefits and wage replacement to employees injured in the course of their work, which does not directly address the financial losses incurred from a temporary closure of the business itself. Thus, business interruption insurance is the most relevant type of coverage for a business facing temporary closure.