Under which coverage could Jay's Chip Factory claim lost income due to a supplier's machine breakdown?

The most appropriate coverage for Jay's Chip Factory to claim lost income due to a supplier's machine breakdown is contingent business income and extra expense coverage. This type of insurance is designed to protect businesses from the financial impact of supply chain disruptions, specifically when a supplier's failure to deliver goods or services leads to a loss of income for the insured business.

In this scenario, if a supplier experiences a machine breakdown that prevents them from providing necessary materials to Jay's Chip Factory, the factory could suffer a loss of revenue. Contingent business income coverage comes into play specifically in situations like this, as it covers the income that the insured would have earned if the supply chain had not been disrupted.

The other options may address different aspects of a business’s financial needs but do not specifically cover loss of income due to a supplier's breakdown. Business interruption coverage typically applies on a more direct level, often concerning the business's own operations rather than third-party suppliers. General liability insurance focuses on claims made against the business for bodily injury or property damage and wouldn't cover income loss. Equipment failure insurance pertains to the loss or damage of the insured's equipment, rather than the loss of income caused by a supplier’s issues. Thus, contingent business income and extra expense coverage is