Which type of coverage allows for payment of losses if civil authority denies access to insured premises?

Civil Authority coverage is specifically designed to provide payment for losses incurred when a civil authority denies access to an insured premises due to a covered event. This type of coverage is particularly relevant during situations where governmental action restricts access to property, such as evacuation orders following a natural disaster or civil unrest.

When the civil authority issues such a directive, it can result in significant financial losses for businesses that are unable to operate or serve customers. Civil Authority coverage ensures that the insured can recover lost income and expenses during this period of business interruption, provided the loss is tied to the directive from the civil authority.

Other coverage types, such as Business Interruption, typically focus on losses due to physical damage to property that affects operations, while Loss of Use generally pertains to personal property rent and usage issues. Property Damage deals with physical harm to the insured premises itself. Therefore, while some of these other types might be relevant in broader contexts of operational loss, they do not specifically address the scenarios involving denials of access imposed by civil authorities, making Civil Authority the most accurate choice in this situation.