Question 1

How do we calculate the right BI limit?

Accepted Answer

Build a worksheet that captures projected revenue, continuing expenses (rent, debt service, salaried payroll, contracts), and the gross profit the company would have earned over the indemnity period. Carriers offer a BI worksheet that the underwriter expects to see at every renewal.

Question 2

What is contingent business interruption?

Accepted Answer

It is BI triggered by physical damage at a property you do not own — most commonly a key supplier, customer, or shared attractor. We add it for manufacturers, distributors, restaurants, and any business with a single point of dependency in its supply chain.

Question 3

Does BI cover the COVID-style loss of revenue?

Accepted Answer

Almost never. Pure income loss without underlying physical damage to property is excluded under nearly every commercial BI form, and the post-2020 case law has reinforced that. Pandemic-style coverage exists on a parametric or specialty basis; we can structure it separately if it fits.

Question 4

How long should our indemnity period be?

Accepted Answer

We anchor it to the longest plausible rebuild scenario for the operation — typically 12 months for office and light-industrial; 18–24 months when permitting, custom equipment, or tenant improvements sit on the critical path.

Business Interruption Insurance — what actually pays after a loss.