Help for Business Interruption Insurance

When you buy business interruption insurance, the insurance company will pay only for those costs that continue if some disaster stops your business from continuing. This model is an example of how the insurance number is calculated.

Gross Annual Business Income (Sales):  Gross sales for most recent year

Discounts and Allowances:  Sales returns and other sales allowances

Annual Cost of Merchandise or Stock:  Merchandise costs you would save if your business were interrupted.

Estimated Gross Profit:  Annual gross profit that you would lose if your business were interrupted.

Salary/Wages That Will Not Be Paid:  Wages you would not be paying if your business were interrupted.

Other Expenses That Will Not Be Paid:  Other expenses you would not be paying if your business were interrupted.

Business Interruption Insurance Needed:  This is the bottom line on the amount of business interruption coverage that you can purchase.