Final answer:
Business interruption insurance is specifically designed to cover the loss of income when business operations are interrupted, unlike coinsurance which involves sharing the cost of a loss with the insurance company.
Step-by-step explanation:
The insurance option that provides coverage for loss of income following the interruption of business operations is business interruption insurance. Unlike coinsurance, which involves the policyholder paying a percentage of a loss with the insurance company covering the remaining cost, business interruption insurance is designed specifically to cover lost income during periods where a business cannot operate as usual, for example, due to a natural disaster or a mandatory evacuation. It is a critical component for businesses to manage risk and ensure financial stability in the face of unforeseen events.
A business owner policy may include business interruption coverage along with other protections, while key-person life insurance is focused on the financial impact of losing an individual crucial to the business's operation.