A business interruption insurance calculator for the months after a loss

Monthly income at risk is net profit plus continuing expenses plus payroll kept on, increased by any peak-season adjustment. That figure times the months to repair and reopen gives the loss during restoration. Monthly income at risk times extended recovery months, times the share of normal income not earned, adds recovery loss. Extra expense completes it.

The results break the recommendation into its parts, so the owner and producer can see which assumption drives the number. A long restoration period usually dominates; a big extra expense figure suggests a separate extra expense limit may be worth discussing.

This is a simplified worksheet, not the insurer's business income worksheet, and the disclaimer says the owner's accountant should complete that form.

Its definitions cover continuing expenses, ordinary payroll, period of restoration, extended period of indemnity, extra expense and coinsurance. They also explain that coverage pays only after direct physical loss from a covered cause, and that a waiting period, often 72 hours, usually applies at the start of the restoration period.

That last point matters: a shutdown caused by something other than covered physical damage, or a short closure inside the waiting period, may not trigger the coverage. Making that clear before the call prevents misunderstandings later.

The coinsurance definition helps owners understand why carrying too low a limit can reduce what the policy pays, which is often the most persuasive argument for reviewing the limit.

Commercial-lines and small-business agencies writing businessowners policies and commercial property, particularly for restaurants, retailers, manufacturers, medical offices and any business tied to one location. It also helps personal-lines agencies that write a few BOPs and want a structured way to start the commercial review.

Seasonal businesses benefit most from the peak-season input, because an average-month calculation understates a closure during their busiest weeks.

Placed next to the flood or workers' comp calculator, it lets one business owner work through several exposures in one visit.