Insurance coverage that will pay out income that a policyholder loses as a result of a disability, injury, or business disruption.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Insurance that covers the interruption of a policyholder's business activities, whether in whole or in part. A policy may cover loss of income from the cessation of business activities due to an act of God, such as a tornado or a hurricane, or a foreseeable incident. Likewise, it may cover partial interruption of activities, such as a situation in which an employee's long-term injury results in a loss of production. Loss-of-income insurance may also refer to personal insurance providing income for a person's disability or long-term illness.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved