Business interruption indemnity period checker
Tick everything that applies. The checker adds a typical allowance for each factor — the logic is shown in full on the right, so you can see exactly why the band moves.
This checker illustrates how recovery factors typically stack up; the month allowances are illustrative, not a survey of your business, and the output is not advice or a recommendation. The right indemnity period comes from walking through your own recovery story — discuss it with your broker.
Why 12 months is so often too short
An indemnity period has to fund the journey back to the trading position you would have had without the loss — not just the journey back to an open door. Rebuild timetables, consent, lead times on plant, and the slow work of winning customers back all run consecutively more often than in parallel. Here is how the typical recovery drivers stack up by business type:
| Business type | Typical recovery drivers | Why 12 months struggles |
|---|---|---|
| Manufacturer | Rebuild + specialist plant lead times + re-qualifying with customers | A single imported production line can take a year to replace before commissioning even starts. |
| Hotel / hospitality | Rebuild + fit-out + seasonal peaks + rebuilding bookings | Reopen in November and the recovery really runs to the end of the following summer season. |
| Listed-building occupier | Consent + conservation-grade reinstatement + specialist trades | Listed-building consent and heritage materials can consume the whole first year. |
| Food producer | Rebuild + hygiene accreditation + retailer re-listing | Supermarket shelf space lost to a competitor is not handed back on reopening day. |
| Professional / office firm | Temporary premises + IT recovery + client retention | Often the best case for shorter periods — but client drift can still outlast the lease on the serviced office. |
Illustrative recovery drivers, not underwriting criteria. Page reviewed 21 August 2026.
What the indemnity period actually limits
Business interruption cover pays for loss of gross profit (or revenue) and increased cost of working from the date of the damage until the earlier of full recovery or the end of the indemnity period. When the period ends, payments stop — even if turnover is still below where it should be. Choosing the period is therefore a forecast of your worst realistic recovery, made in advance. It is also worth knowing that a longer indemnity period changes the sum insured arithmetic: a 24-month period generally needs 24 months of gross profit declared. Our guide to choosing a BI indemnity period works through this in detail, and the gross profit vs gross revenue guide covers the definition that sits underneath the numbers.
How to use the checker’s answer
Treat the band as the opening position for a conversation, not the conclusion of one. The honest version of this exercise is the recovery story: sit down — ideally with your broker — and narrate what actually happens the morning after a major fire. Who do you call, where do you trade from, what has to be designed, consented, built, delivered, installed, accredited and re-sold before the management accounts look normal again? Every month in that story needs to be inside the indemnity period. The full walkthrough lives in our business interruption insurance guide.
Frequently asked questions
What is a business interruption indemnity period?
It is the maximum length of time, starting from the insured damage, for which the BI section will pay your loss of gross profit and increased costs of working. Once it expires, cover stops regardless of whether the business has recovered.
Why is 24 months such a common recommendation?
Because for most businesses with premises, the arithmetic of rebuild time plus fit-out plus winning trade back comfortably exceeds 12 months but usually lands inside 24. It is a starting point, not a rule — businesses with long rebuilds, consent risk or slow win-back often need 36.
Does a longer indemnity period mean a bigger sum insured?
Generally yes. The declared gross profit needs to reflect the whole indemnity period, so a 24-month period typically means declaring 24 months of projected gross profit. Getting the definition and the projection right matters as much as the period itself.
Does the indemnity period start when I claim?
No — it runs from the date of the damage. Time spent assessing, negotiating and planning all counts against it, which is another reason a period that looks generous on paper can feel tight in practice.
Can I just buy increased cost of working cover instead?
ICOW-only cover pays the extra costs of keeping trading but not the lost profit itself, so it suits businesses that could genuinely relocate and keep serving customers quickly. If your recovery depends on premises, plant or seasonal trade, it rarely replaces a proper gross profit BI section.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.