How Much Business Interruption Coverage Do I Need?
Estimate income and continuing expenses for a realistic recovery period, including delays for repairs, equipment replacement, permitting, or relocation.
Add separate limits for supplier or utility risks if your policy offers those extensions. Consider how long repairs, replacement equipment, permitting, or a move could take, as well as whether revenue might return gradually. Supplier or utility dependencies may require separate extensions rather than a larger standard limit. There is no single amount that fits every operation.
Use financial statements, budgets, payroll, debt service, lease obligations, and a recovery timeline to discuss the limit with a broker. Check the policy’s income definition, waiting period, restoration period, coinsurance or monthly limitation, and extra-expense limit. Revisit the estimate when revenue or operations change.
