Business Interruption Coverage Calculator

Calculate the appropriate business interruption insurance coverage based on revenue, profit margin, and expected recovery timeline.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Annual Revenue

Annual Operating Expenses

Gross Profit Margin

Estimated Recovery Time

months

Extra Expense Budget

Waiting Period

days

Tab to move between fields

Results

Recommended Coverage

$456,666.67

≈ 11 Teslas

Projected Lost Profit$200,000.00

Continuing Fixed Expenses$210,000.00

Monthly Revenue at Risk$83,333.33

Estimated Monthly Premium$1,141.67

Estimated Annual Premium$13,700.00

How to Use This Calculator

Enter your average monthly revenue.
Input your fixed monthly operating expenses (rent, payroll, utilities).
Set the estimated restoration period in months.
Review the recommended monthly indemnity limit and total coverage needed.
Ensure the waiting period and coverage period in the policy match your risk tolerance.

How the result changes with Estimated Recovery Time

Estimated Recovery Time	Recommended Coverage
3.3	$272,166.67
9.05	$665,083.33
16	$1,140,000.00
22	$1,550,000.00

What each input means

Annual Revenue: Your business's annual gross revenue.
Annual Operating Expenses: Total annual operating expenses including payroll, rent, utilities.
Gross Profit Margin: Your gross profit as a percentage of revenue.
Estimated Recovery Time: How long it would take to fully recover operations after a loss.
Extra Expense Budget: Additional costs to minimize downtime (temporary location, equipment rental).
Waiting Period: Days before coverage kicks in (like a deductible). Typically 24-72 hours.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Annual Revenue = 1000000, Annual Operating Expenses = 700000, Gross Profit Margin = 40, Estimated Recovery Time = 6 = 6 input(s) provided
Calculate Recommended Coverage
456666.67 = $456,666.67
Calculate Projected Lost Profit
Projected Lost Profit
200000 = $200,000
Calculate Continuing Fixed Expenses
210000 = $210,000