How do I calculate Business Interruption cover?

September 12, 2025

How do i calculate Business Interruption cover?

Business Interruption (BI) insurance covers trading and financial losses that directly result from business disruption. Here's how to determine what you need:

Types of Business Interruption cover:

• Gross Profit: Suitable for businesses producing, wholesaling, or retailing goods
• Gross Revenue: For service businesses with interlinked activities involving stock
• Gross Fees: For service businesses that charge fees with little stock
• Gross Rental: For businesses receiving rental income

Key considerations:

• How long would it take to recover after a loss? (This determines your indemnity period - usually 12, 24, or 36 months)
• Factor in building repairs, stock replacement, staff salaries, and rebuilding customer relationships

Account for inflation and business growth over the indemnity period

Remember: If your cover is £100,000 but recovery takes 2 years, you need £200,000 of cover.

Need help calculating the right amount? We'll guide you through your specific circumstances.