Business Interruption Loss
Calculator
Results
- Lost gross profit
- 126,000
- Continuing expenses total
- 54,000
- Business interruption loss
- 180,000
- Monthly loss
- 60,000
Insurance and risk results
| Lost gross profit | 126,000 |
| Continuing expenses total | 54,000 |
| Business interruption loss | 180,000 |
| Monthly loss | 60,000 |
formula-map diagram
- Lost gross profit
- 126,000
- Continuing expenses total
- 54,000
- Business interruption loss
- 180,000
- Monthly loss
- 60,000
Coverage and risk relationship
Formula
BI loss = (revenue × gross margin % + continuing expenses) × months= 126000
Note
This is generic arithmetic using the amounts, rates and factors you entered. It is not an insurance quote, a policy interpretation, or financial advice. No insurer rate, jurisdiction rule, statutory limit or policy wording is built in. Real premiums and payouts depend on underwriting, your policy's exact terms and exclusions, and applicable regulation; confirm with your insurer or a licensed professional.
More in Insurance and risk
See all →Frequently asked questions
What does business interruption coverage actually pay for?+
It reimburses lost net income and continuing fixed expenses (rent, payroll, loan payments) during the period a covered event forces your business to suspend or reduce operations, essentially putting you in the financial position you'd have been in without the interruption.
How is the loss amount calculated?+
It's typically based on your historical financial records — usually the net income and normal operating expenses you would have earned, projected forward for the restoration period, minus any expenses you no longer have to pay during the shutdown.
What is the 'period of restoration' and why does it matter?+
It's the time from the date of loss until the business could reasonably be restored to normal operations with due diligence; the calculator uses this period as the multiplier for lost income, so an inaccurate estimate significantly skews the total.
Does this cover a slow recovery in customers after reopening?+
Some extended policies include 'extended period of indemnity' coverage for the time it takes revenue to return to pre-loss levels even after physical repairs are done, but standard coverage typically stops once the business could physically reopen.
What's not covered by standard business interruption insurance?+
Losses from causes not covered by your underlying property policy (since interruption coverage is triggered by a covered property loss), broad market downturns unrelated to physical damage, and utility or supply chain issues unless you have specific endorsements for those.