Insurance & Protection Tools
Business Interruption Coverage Calculator
Model a simplified interruption loss from lost revenue, continuing expenses, payroll, temporary relocation and restoration time, then compare the result with an entered coverage limit.
Business continuity planning
Model the financial impact of an interruption
Estimate lost revenue after saved variable costs, add continuing expenses, payroll, temporary relocation and waiting-period exposure, then compare the modeled loss with an entered BI limit.
Modeled interruption loss
$976,000
Entered coverage limit
$700,000
Potential shortfall
$276,000
Coverage ratio
71.7%
Transparent loss breakdown
| Component | Amount | Treatment |
|---|---|---|
| Gross revenue loss | $720,000 | 6 months × monthly revenue. |
| Saved variable costs | −$252,000 | 35% assumed not to continue during interruption. |
| Net revenue loss | $468,000 | Gross revenue loss less saved variable costs. |
| Continuing expenses | $168,000 | Expenses entered as continuing during restoration. |
| Payroll | $252,000 | Payroll entered as continuing during restoration. |
| Temporary relocation | $72,000 | Temporary premises / relocation cost. |
| Waiting-period exposure | $16,000 | 3 days × modeled daily operating loss. |
Potential coverage gap detected
Modeled interruption loss: $976,000. Entered limit: $700,000. Potential gap: $276,000.
Keep the scenario
Export or save the analysis
Save the assumptions as CSV, a printable report or a reusable local FormatForge project.
Sample business assumptions loaded.
Planning estimate — not a claim valuation
Actual business interruption claims can depend on gross profit definitions, indemnity period, trends clauses, waiting periods, extra-expense rules, exclusions and evidence of loss. Use current policy wording and professional advice where required.
Business continuity scenario
Model more than lost sales
Business interruption exposure can include continuing expenses, payroll and temporary operating costs as well as lost revenue. The workspace keeps each assumption visible so users can stress-test the restoration period instead of relying on one opaque total.
Transparent shortfall view
Compare the modeled loss with the entered BI limit
The calculator shows the potential gap and coverage ratio without claiming that the entered limit will necessarily respond to every component of the modeled loss.
Frequently asked questions
What does the Business Interruption Coverage Calculator estimate?
It models gross lost revenue, saved variable costs, continuing expenses, payroll, temporary relocation costs and a simplified waiting-period exposure over the entered restoration period.
Why subtract variable costs from lost revenue?
Some variable costs may not continue while operations are interrupted. The tool lets you enter an assumed percentage of revenue that represents costs saved during the interruption.
What is the waiting-period exposure?
The calculator estimates a daily operating loss from the modeled interruption amount and multiplies it by the entered waiting-period days. This is only a planning approximation.
Does the calculator predict an actual insurance payout?
No. Actual business interruption claims depend on policy definitions, indemnity periods, trends clauses, exclusions, limits, proof of loss and insurer assessment.
Can I compare the modeled loss with my policy limit?
Yes. Enter a business interruption coverage limit and the workspace shows the modeled covered amount, potential shortfall and coverage ratio.
Can I save the analysis?
Yes. You can copy the summary, export CSV, print/save a PDF-style report, or save a local FormatForge project file and restore it later.
Insurance workflow
Stress-test the limit, then review the actual policy
Use this calculator for business interruption scenario math, then use the Policy Comparison Workspace or Policy Document Organizer when reviewing actual coverage wording and endorsements.