Business Interruption Insurance Calculator
Estimate how much business interruption coverage you need. This calculator shows the coverage limit that would protect your business if a covered event forced you to close for months.
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How Much Business Interruption Coverage Do You Need?
Most businesses need coverage equal to 3–12 months of gross profit plus continuing fixed expenses. A business earning $40,000/month with $25,000 in fixed monthly costs and 6 months of coverage needed would need roughly $150,000 to $240,000 in coverage.
What Does Business Interruption Cover?
Lost Net Income
The profit you would have earned during the closure period, calculated from your historical financials.
Continuing Operating Expenses
Rent, utilities, loan payments, employee salaries, and other expenses that continue even when operations stop.
Extra Expenses
The cost of temporarily relocating, renting equipment, or paying overtime to minimize the disruption.
Frequently Asked Questions
Is business interruption insurance required?
No, but it's included in most BOPs and commercial property policies. Lenders often require it as a condition of a commercial mortgage.
What triggers business interruption coverage?
A covered peril — like fire, storm damage, or a covered equipment breakdown — that forces you to close. Standard policies do not cover closures due to pandemics, government orders, or supply chain issues unless you add specific endorsements.
How is the coverage limit calculated?
Insurers typically base it on your projected gross profit for 12 months plus continuing expenses. Underinsuring is common — most businesses don't realize how long recovery takes.