Turn outage data into defensible loss estimates. Compare expected sales, actual sales, and saved costs. Download claim-ready reports in seconds, not spreadsheets anymore today.
Sample scenarios below show how inputs can change estimated payable.
| Scenario | Interruption days | Baseline monthly revenue | Gross margin | Extra expense | Estimated payable |
|---|---|---|---|---|---|
| Retail store partial closure | 30 | $80,000 | 35% | $5,500 | $52,400 |
| Light manufacturing shutdown | 60 | $120,000 | 38% | $12,000 | $138,900 |
| Warehouse disruption with rerouting | 45 | $60,000 | 28% | $18,000 | $64,700 |
Example amounts are illustrative and not tied to any insurer.
Required insurance is estimated from expected annual revenue and the chosen margin rate, scaled by the coinsurance requirement.
For best results, support inputs with sales history, payroll reports, invoices, and a timeline of restoration actions.
Business interruption severity scales with both duration and revenue density. A 45‑day outage equals about 1.48 months (45 ÷ 30.4167). If baseline revenue is 120,000 per month, the period exposure is roughly 177,960 before trend. In many claims files, restoration timelines cluster between 14 and 90 days; beyond 120 days, documentation and causation scrutiny usually increases. Document dates, capacity constraints, and customer orders to support the restoration schedule.
Using comparable months reduces seasonality bias. The calculator applies a growth factor of (1 + Growth%). For example, a 2.5% uplift raises annualized revenue from 1,440,000 to 1,476,000. When actual revenue continues during the loss period, subtracting it avoids double counting and highlights true shortfall. A consistent baseline is often more defensible than optimistic peaks.
Choose a margin that matches policy language and books. With a 38% gross margin, a 100,000 revenue shortfall implies 38,000 income loss. Net income margins are typically smaller; a 12% margin on the same shortfall yields 12,000, then adds continuing expenses. Separate “saved” costs from continuing obligations to prevent overstating the claim.
Extra expense can accelerate recovery, but sublimits cap reimbursement. If submitted extra expense is 12,000 and the sublimit is 25,000, the full 12,000 is eligible in the model. Mitigation income offsets loss: temporary sales of 8,000 reduce payable by the same amount. Track invoices, labor, and vendor contracts to connect spending to regained revenue.
Waiting periods work like time deductibles: with 60 days downtime and a 3‑day wait, the factor is 57/60 = 0.95. Coinsurance can also reduce recovery if limits are low versus required insurance. A limit of 250,000 against a required 300,000 yields a 0.8333 factor. These levers can change a six‑figure gross loss into a smaller payable number.
Use monthly revenue from comparable, pre-loss periods that reflect normal operations. If sales are seasonal, average the same months from prior years. Avoid one-off promotions unless you can prove they would have repeated during the loss period.
Pick the option that aligns with policy wording and how your financial statements present earnings. Gross profit applies a margin to lost revenue. Net income uses a smaller margin and then adds continuing expenses that persist during the shutdown.
The waiting period reduces the covered time portion of the loss. The calculator applies a factor of covered days divided by total interruption days. Longer waits reduce payable, especially for shorter interruptions where the first days are most impactful.
Continuing expenses are costs that keep accruing during the interruption, such as rent, certain utilities, key vendor retainers, and insured payroll that remains covered. Only include expenses you can support with invoices, contracts, or payroll records.
Coinsurance is simplified by comparing your coverage limit to an estimated required insurance amount. Required insurance is based on expected annual revenue multiplied by your selected margin, then scaled by the coinsurance percentage. If the limit is lower, payable is reduced.
Treat the result as a planning and documentation aid. Actual settlement depends on policy definitions, limits, sublimits, exclusions, and proof of loss. Use the exports to support discussions, then reconcile with accounting records and adjuster requests.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.