Does Business Interruption Cover Lost Revenue?
It may reimburse covered lost business income, but calculations usually reflect net income and continuing expenses rather than gross sales alone.
NAIC describes business interruption as covering lost net income during a closure while repairs are underway, and its guidance also refers to revenue the business would otherwise have earned. “Revenue” in ordinary speech is not necessarily the policy’s payment measure: the form may deduct expenses that do not continue and account for continuing operating costs. The amount also depends on the covered trigger and restoration period.
Check the policy definition of business income, documentation requirements, limit, waiting period, and method for projecting results. Gather pre-loss financial statements and records of saved expenses. Ask whether extra expense is included and how partial operations or a temporary site affect the loss calculation.
Related Coverage
Sources
- Business Interruption and Business Owner Policy. National Association of Insurance Commissioners; Background; Commercial property; Business interruption; Contingent business interruption. Accessed 2026-09-25.
- FAQ on business interruption insurance and other issues affecting California small businesses. California Department of Insurance; Business interruption trigger; COVID-19 income loss; policy exclusions; civil authority. Accessed 2026-09-25.
- What Business Income Loss Coverages Are Out There? Learn the Endorsements That Can Help with Lost Business Income. National Association of Insurance Commissioners; Top Considerations; Things You Should Know: business income, extra expense, service interruption, contingent business interruption, civil authority. Accessed 2026-09-25.
- Commercial Property and Business Income Coverage Forms in SES sample policy. Insurance Services Office, Inc.; sample hosted by SES Insurance; CP 00 10 10 12, printed pp.1–16 / PDF pp.7–22: A.1 Covered Property, A.2 Property Not Covered, E.1.b Property of Others, E.1.e Outdoor Property; CP 00 30 10 12, printed pp.1–9 / PDF pp.22–30: Business Income definition, trigger, coinsurance and restoration period. Accessed 2026-09-25.
