Model failure impact for repairs, downtime, and revenue. Adjust limits, deductibles, and service contracts instantly. Export results, compare scenarios, and protect operations with confidence.
| Scenario | Equipment | Replacement | Downtime | Limit | Deductible | Notes |
|---|---|---|---|---|---|---|
| Cold storage outage | HVAC / Refrigeration | $180,000 | 7 days | $250,000 | $2,500 | Higher BI impact; service contract helps pricing. |
| Production line failure | Manufacturing Line | $450,000 | 14 days | $400,000 | $10,000 | Coinsurance risk if limit is below required value. |
| UPS replacement | Data Center / UPS | $320,000 | 3 days | $350,000 | $5,000 | High hazard; tight waiting period reduces covered BI. |
This tool combines three cost blocks: physical loss, interruption, and extra expense. Physical loss is sized as the higher of repair or replacement, minus salvage. If replacement is 150,000 and salvage is 5,000, the physical exposure starts near 145,000 before policy terms.
Interruption is modeled from billable downtime and daily revenue loss. Daily loss can be entered directly, or estimated as annual revenue divided by operating days. With 1,200,000 revenue across 300 days, daily loss is 4,000. A 10‑day outage with a 1‑day waiting period bills 9 days, producing 36,000 before any sublimit cap.
The payable estimate applies deductible, coinsurance, and the coverage limit in that order. Coinsurance compares your limit to the required insured value, typically a percentage of replacement cost. With 80% coinsurance on 150,000, the requirement is 120,000; limits below that reduce payment proportionally, even when exposure is otherwise covered. For example, with a 2,500 deductible and a 200,000 limit, only the post‑deductible amount can be paid, up to the limit.
Premium is estimated from limit, a base rate per 1,000 of limit, and a risk multiplier. The multiplier blends equipment type, environment, maintenance score, age tier, and service-contract credit. Manufacturing and data-center profiles raise hazard factors, while excellent maintenance can reduce the multiplier below 0.90. At a base rate of 3.25 per 1,000, a 200,000 limit produces 650 of base premium before multipliers. A 12% underwriting load then scales the priced premium for overhead and margin.
Use Total Exposure to stress-test worst credible events, then compare it with Estimated Payable to locate uninsured gaps. Suggested Limit adds inflation on replacement plus uncapped downtime and a 10% buffer on extra expense. Run multiple scenarios to justify higher limits, tighter deductibles, or BI sublimits aligned to your cash-flow tolerance. The Plotly chart helps visualize which cost block dominates each scenario.
Total Exposure adds physical loss, interruption impact, and extra expense before deductible, coinsurance, and limits. It is a planning estimate for a single breakdown event, not a guaranteed settlement.
If Daily Revenue Loss is zero, the calculator estimates it as Annual Revenue divided by Operating Days per year. This converts yearly turnover into an operating-day average for downtime calculations.
Coinsurance compares your limit to a required insured amount, often a percentage of replacement cost. If the limit is below the requirement, the payable amount is reduced by the same ratio, creating a penalty.
The waiting period removes the first part of downtime from interruption coverage. Only days after the waiting period are billable in the BI exposure calculation, which reduces covered loss for short outages.
Suggested Limit inflates replacement cost, adds uncapped downtime impact, and includes a 10% buffer on extra expense. Use it as a planning reference, then align it with policy wording, sublimits, and budget.
No. The premium is an estimate using a base rate, risk multiplier, and underwriting load. Actual pricing depends on insurer rules, loss history, protections, location, and the exact equipment schedule.
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.