Business Interruption Insurance Calculator

What counts as 'continuing fixed expenses'?

Rent or mortgage payments, loan payments, insurance premiums, and salaries for key employees you must retain to reopen — anything that keeps coming due whether or not you're generating revenue. Variable costs tied directly to sales, like materials and hourly staff you'd lay off, typically don't belong in this bucket since they'd naturally drop during a shutdown.

Why add a contingency buffer to the restoration period estimate?

Actual rebuild timelines routinely exceed initial estimates because of permitting delays, contractor availability, supply chain issues for materials or specialized equipment, and inspection cycles. Insurers and risk consultants commonly recommend adding 20–50% to your best-guess restoration timeline, which is why this calculator defaults to a 25% buffer.

What's the difference between business interruption and extra expense coverage?

Business interruption replaces the net income and fixed costs you lose while shut down. Extra expense covers additional costs you incur specifically to keep operating or reopen faster — renting temporary space, expediting equipment shipping, or paying overtime. Most policies bundle both, and this calculator includes a line for extra expense so you size the full picture.

Does business interruption coverage have a waiting period?

Yes, typically a 24-, 48-, or 72-hour deductible period (sometimes called a 'time deductible') during which no loss is paid, similar to how a dollar deductible works on property coverage. Shorter waiting periods cost more in premium, so match it to how much cash reserve you'd have on hand to bridge that gap.