What type of policy covers expenses incurred when business is suspended due to a disaster-related event?

The correct choice for covering expenses incurred when a business is suspended due to a disaster-related event is a business interruption policy. This type of policy is specifically designed to provide financial support to a business that cannot operate because of damages caused by a covered disaster, such as a fire, flood, or other significant events. It helps to cover lost income and certain ongoing expenses during the period that the business is unable to operate, allowing the business to recover more smoothly.

This distinction is critical because while general liability policies cover bodily injury and property damage claims made by third parties, they do not address the loss of income or operational costs associated with business interruption. All risk policies cover a broad range of risks but typically do not focus on the specific needs of income loss due to operational disruptions. Property damage policies, on the other hand, primarily cover the physical damage to business assets and do not address the financial implications of being unable to conduct business as usual during periods of disaster-related suspension.