Which policy covers the indirect loss of income following a loss?

The Business Income Policy is designed specifically to cover the loss of income that a business suffers as a result of a covered loss, such as damage to its property. This type of policy is crucial for businesses that rely on their operations to generate revenue, as it helps replace the income that would have been earned during the period of recovery after a loss occurs. The policy typically provides coverage for both the income that would have been earned and continuing expenses that must still be paid, ensuring the business can sustain itself while it gets back on its feet.

For instance, if a fire damages a restaurant, leading to temporary closure, the Business Income Policy would help cover lost profits and certain expenses while the restaurant is being repaired. This ensures that the financial impact of the loss doesn't lead to severe long-term consequences for the business.

Other options like Comprehension Coverage and Extra Expense Policy do not specifically address the indirect loss of income; rather, they cater to different aspects of property coverage or additional costs incurred due to a loss. Declarations refer to the section of an insurance policy that outlines the coverage details, which is not a type of coverage itself. Hence, recognizing the Business Income Policy as the correct answer highlights its role as a safety net for revenue generation following a loss