Estimate a business interruption coverage limit from projected lost gross profit, continuing expenses, extra expenses, restoration time, and a contingency allowance. The calculator also compares the modeled need with your current limit and shows an estimated shortfall or surplus. Because policy definitions of business income, waiting periods, payroll, restoration, and extra expense vary, use the result as a scenario-planning figure and reconcile every input with your financial records and policy wording.
Base exposure = (monthly gross profit + monthly continuing expenses) × restoration months + extra expense
Coverage need = base exposure × (1 + contingency %) + retained cash need
The main result is the modeled amount needed to fund the entered scenario. The gap compares this need with the current limit, without assuming every cost is covered.
Policy definitions, exclusions, waiting periods, deductibles, sublimits, aggregate limits, defense treatment, coinsurance, and jurisdictional rules can materially change coverage. Review the estimate with qualified insurance and legal professionals.
Monthly gross profit of $120,000 and continuing expenses of $80,000 are exposed for 6 months, plus $150,000 extra expense. Add 15% contingency and $50,000 retained cash need.
Base = ($120,000 + $80,000) × 6 + $150,000 = $1,350,000
Need = $1,350,000 × 1.15 + $50,000 = $1,602,500
Against a $1,000,000 current limit, the modeled shortfall is $602,500.
No. It is a planning estimate based on your scenarios and does not account for every exclusion, endorsement, or legal requirement.
Legal defense can materially increase the total exposure and may be inside or outside the policy limit depending on the wording.
Use a credible severe scenario rather than an unsupported extreme, then test additional scenarios to see how sensitive the gap is.
The calculator subtracts the current limit from the modeled coverage need to show an estimated shortfall or surplus.
Yes. The deductible is added to the cash exposure because it is generally retained rather than paid by the insurer.
| Input | Purpose |
|---|---|
| Gross profit | Monthly earnings contribution at risk |
| Continuing expenses | Costs that persist during interruption |
| Restoration period | Modeled disruption duration |
| Extra expense | Additional cost to reduce or recover from interruption |