Which coverage would apply if equipment malfunction causes loss of business income?

Equipment Breakdown Coverage is specifically designed to protect businesses from the financial impact of equipment failures that can result in lost income. This type of coverage addresses situations where an unexpected malfunction of machinery or equipment leads to a disruption in normal operations.

When a piece of equipment breaks down, it can halt production or the delivery of services, which can directly lead to a loss of income during the downtime until the equipment is repaired or replaced. This coverage can help businesses recover their lost income and is particularly vital for industries that rely heavily on machinery.

In contrast, Direct Damage Coverage typically protects against physical damage to property, but it doesn't cover the loss of income that arises from equipment failure. Earth Movement Coverage and Flood Coverage focus on damages caused by natural disasters and do not apply to equipment malfunctions. Thus, Equipment Breakdown Coverage is the most relevant option regarding financial losses stemming from operational disruptions due to equipment failure.