Business Interruption Loss Calculator

Work out business interruption loss instantly with clear inputs, formula shown and shareable results.

About Business Interruption Loss Calculator

A business interruption claim is lost insurable gross profit over the indemnity period, plus increased cost of working incurred to mitigate the loss, less variable costs genuinely saved while trading was suspended. Insurable gross profit is a policy definition, not the accounting one.

Formulas

Lost gross profit

Lost GP = Annual insurable gross profit / 365 x Interruption days

Claim

Claim = Lost GP + Increased cost of working - Saved variable costs

Worked example

With the default values below, Business Interruption Loss Calculator returns Estimated business interruption claim of $1,317,876.71. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual insurable gross profit: 6,000,000
Days of interruption: 75
Increased cost of working incurred: 180,000
Variable costs saved during the outage: 95,000

Results

Estimated business interruption claim: $1,317,876.71
Lost gross profit over the outage: $1,232,876.71
Insurable gross profit per day: $16,438.36
Net increased cost of working: $85,000.00

Step by step

1Values used
2Lost gross profit
3Claim
4Estimated business interruption claim= 1,317,876.71
5Lost gross profit over the outage= 1,232,876.71
6Insurable gross profit per day= 16,438.36
7Net increased cost of working= 85,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or tax into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Actual settlement depends on the policy definition of gross profit, indemnity period, waiting period, trend clauses and adjuster assessment. Not insurance advice.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Actual settlement depends on the policy definition of gross profit, indemnity period, waiting period, trend clauses and adjuster assessment. Not insurance advice.

Frequently Asked Questions

Why is insurable gross profit different from accounting gross profit?

Because the policy adds back most fixed costs and standing charges that continue during the outage. Using the accounting figure typically understates cover and causes underinsurance.

What is the indemnity period?

The maximum time the policy will pay for, chosen at inception. It must cover full recovery to pre-loss trading, which for specialist plant can exceed 24 months.