Insurance & protection · Calculator companion · By K Imports
Business interruption cover: practical guide
This guide explains how to use the Count.ie business interruption cover. Project policy-defined gross profit over the chosen indemnity period. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Business interruption cover calculatorWhat to prepare
- Use policy wording, insured values, financial records and the proposed coverage period.
- Distinguish replacement value, market value, debt and an income-protection need.
- Check exclusions, waiting periods and limits separately from the calculator.
Understand the inputs
The calculation method
Sum monthly projected policy gross profit over the indemnity period, using the entered growth trend, then add separately covered expenses.
Worked example
Illustrative inputs and their result.
Example inputs
- Annual turnover (€)
- 1000000
- Insurance-policy gross profit ratio (%)
- 40
- Indemnity period months
- 24
- Assumed annual trend growth (%)
- 5
- Additional expenses to insure (€)
- 50000
Calculated example result
- Indicated Business Interruption Cover
- €888,626.13
- Projected Policy Gross Profit
- €838,626.13
How to interpret the result
An estimated cover need or relief does not mean a policy will pay a claim or that an expense is eligible. Coverage, underwriting and statutory conditions must be checked independently.
Compare equivalent coverage and exclusions, not just premiums. Test how a changed valuation, interruption period or household need affects the estimate.
Common mistakes to avoid
- Do not assume a property purchase price equals its rebuild cost.
- Avoid counting the same liability or replacement need twice.
- Check whether the proposed cover period and benefit match the actual exposure.
Assumptions and sources
Editable inputs are planning assumptions; check the method and result notes for scope.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.