Business Interruption Calculator
Breakdown
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Understanding Business Interruption Insurance
Business interruption cover compensates for lost income and continuing fixed costs when a business cannot operate normally due to an insured event - typically calculated based on lost gross profit, not just lost revenue.
Gross Profit, Not Revenue
Business interruption claims are usually based on lost gross profit (revenue minus variable costs that you no longer incur while closed) rather than total revenue, since costs like stock purchases also stop during closure.
Indemnity Period
Your policy specifies a maximum "indemnity period" - the length of time loss of profit is covered, commonly ranging from 12 to 24 months depending on the policy. Choosing an indemnity period that realistically reflects how long full recovery might take is an important policy decision.
What's Typically Included
- Lost gross profit during the closure period
- Continuing fixed costs (rent, permanent staff wages, loan repayments)
- Sometimes additional increased costs of working (e.g. temporary premises)
Estimates only. Actual business interruption claims require detailed financial analysis, typically with an accountant or loss assessor. Not financial or insurance advice.