What is the indemnity period in BI insurance?

The maximum indemnity period is the maximum time the policy will pay for loss of profit. It begins at the date of damage. Common periods: 12 months (inadequate for complex reconstruction), 24 months (standard recommendation), 36 months (heavy engineering/complex builds). Underinsuring the period is the most common BI coverage gap.

What are Increased Costs of Working (ICOW) in BI?

ICOW covers additional expenditure to maintain business activity during restoration: temporary premises, equipment hire, overtime, subcontracting. ICOW is insured up to the gross profit saved by incurring the cost. Uneconomical ICOW (cost exceeds profit saved) is not covered.

Business Interruption Indemnity Period Value Calculator

Calculate business interruption insurance claim value: gross profit × reduction in turnover / annual turnover × indemnity period, plus increased costs of working (ICOW). Applies to material damage trigger and contingent BI.

Statute of Limitations

Incident / Event Date

Claim Type

⚖ For informational purposes only. Not legal advice. Consult a licensed attorney for your specific situation.

How to Use

Enter the values for the scenario you are assessing. Calculate business interruption insurance claim value: gross profit × reduction in turnover / annual turnover × indemnity period, plus increased costs of working (ICOW). Applies to material damage trigger and contingent BI. Use the business interruption result to inform your calculation.

Business Interruption Indemnity Period Value Calculator

Statute of Limitations

How to Use

Frequently Asked Questions

What is the indemnity period in BI insurance?

What are Increased Costs of Working (ICOW) in BI?