Business Interruption Insurance Payout Calculator 2026
Business interruption insurance pays for lost net income + ongoing fixed expenses during recovery from covered events (fire, theft, named storms, civil authority closure). Standard waiting period 72 hours. Indemnity period typically 12 months. This tool computes likely payout.
What Business Interruption Covers
Pays for lost net income (had business operated normally) plus continuing fixed expenses (rent, utilities, key payroll, insurance premiums, loan payments) during forced shutdown. Covered perils typically: fire, theft, named storms, water damage, vandalism. Excluded: pandemic (post-COVID exclusion universal), war, terrorism (separate policy), gradual deterioration.
Waiting Period and Indemnity
Standard waiting period: 72 hours (no coverage for first 72 hours of shutdown). Standard indemnity period: 12 months. Extended indemnity period rider available (24-36 months) for businesses with slow recovery profiles. Civil authority coverage extends to government-ordered closures from covered peril at nearby property (typical 30-day limit).
How To Maximize Coverage
Three actions: (1) Calculate true monthly fixed expenses + net profit annually — most businesses are underinsured by 20-40%. (2) Add extended business income endorsement (covers ramp-back period after physical recovery). (3) Document business interruption plan + maintain financial records off-site for claim documentation. Average claim payout when properly documented: 60-80% of actual losses.
Source: III Business Interruption Insurance Guide 2025, NAIC Commercial Insurance Standards. Last updated: May 2026.