business interruption

Business interruption refers to a situation where a company faces a temporary halt in operations due to unexpected events, such as natural disasters, accidents, or equipment failure. This disruption can lead to a loss of income, increased expenses, and difficulties in meeting obligations like payroll and rent. To mitigate the financial impact, many businesses invest in insurance specifically designed to cover losses incurred during these interruptions. Understanding business interruption is crucial for companies to prepare for potential risks and ensure continuity in their operations and financial stability.