How is a business interruption claim calculated in the US?
Standard US business interruption forms cover lost net income plus continuing normal operating expenses (including payroll) during the period of restoration. You project the income the business would have earned, add continuing expenses and extra expenses, subtract expenses that did not continue, and cap the result at the policy limit.
What is the period of restoration?
The period of restoration begins after the waiting period (often 72 hours) following direct physical loss, and ends when the property is or should be repaired with reasonable speed. Many policies also add an extended period of indemnity to cover the time it takes to return to normal revenue after reopening.
Does business interruption insurance cover COVID-19 losses?
Generally no. Most US policies require direct physical loss of or damage to property, and many contain virus exclusions. The vast majority of pandemic business interruption suits have been dismissed, though coverage turns on the specific policy language and jurisdiction.
What is extra expense coverage?
Extra expense coverage reimburses the additional costs you incur to continue operating or to speed recovery after a covered loss — temporary location rent, equipment rental, overtime, and expedited shipping. It is often written alongside business income coverage and helps minimize the overall claim.