Which coverage allows for additional financial losses incurred due to a covered peril?

Business interruption coverage is designed to provide financial protection against the loss of income that a business may suffer due to a covered peril, such as a fire, flood, or other disaster that disrupts operations. When a business is forced to close or reduce operations because of such an event, this coverage ensures that the owner can recover lost profits, ongoing expenses, and other related costs, helping the business maintain financial stability during the recovery period.

The other types of coverage mentioned serve different purposes. Liability coverage addresses legal obligations and damages to third parties resulting from negligence, but it does not cover loss of income. Premises coverage typically pertains to protecting the physical location and its structures against specific risks but does not extend to lost income due to operational interruptions. Personal property coverage protects a business's physical assets against specified risks, but like the other options, it does not help with financial losses stemming from business operations being halted. Thus, business interruption coverage is the most appropriate choice for addressing financial losses incurred due to a covered peril.