Business Interruption & Downtime Cost Calculator: Estimate Your 2026 BI Coverage Needs

Lost income for business interruption purposes is lost net profit, not lost revenue, because variable costs (materials, hourly labor tied to output, etc.) typically stop along with sales — that's why gross margin % is applied to revenue before counting it as a loss. Continuing fixed expenses are the costs that keep accruing whether or not the doors are open, such as rent, salaried payroll, loan payments, and insurance — the Insurance Information Institute and Chubb both list these as core components of business income coverage. Extra expenses are the additional, one-time costs spent specifically to speed up reopening (temporary space rental, rush shipping, overtime), which Chubb defines as a distinct 'extra expense' coverage. Most policies apply a 48-72 hour waiting period before the 'period of restoration' begins, and the standard restoration period is 30 days but can be extended by endorsement up to 360 days, per the III — so businesses expecting a longer shutdown should size coverage well beyond the policy default.