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.
Coverage Guides Related to Commercial Property Insurance
Sources for Commercial Property Insurance Answers
- 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.