Business Income Indemnity Period Calculator

Indemnity period determines how long lost income is paid after loss.

Monthly income

Indemnity months

Extended months

Continuing expenses %

Total coverage

$8,910,000

Rent loss

$6,750,000

Continuing expenses

$2,160,000

How the math works

Rent loss = monthly × total months. Continuing = monthly × % × indemnity months.

$450k × 15 = $6.75M rent loss + $450k × 40% × 12 = $2.16M continuing = $8.91M total.

How to Use

Enter monthly rent/income.
Enter indemnity months.
Enter extended recovery time months.
Enter continuing expenses %.
Read coverage amount.

Frequently Asked Questions

Indemnity period types?

Standard: 6-12 months typical. Extended: 12-24 months for complex properties. Extended period of indemnity: 30-180 days after restoration (covers ramp-up). Multi-tenant buildings often need extended periods.

Typical calculations?

Rental income basis: full rent × months. Business income basis: gross profit − variable costs × months. Covers rent loss, continuing expenses (property tax, insurance premium, debt service), plus limited extra expense.

Extended vs standard?

Standard covers only actual restoration period. Extended continues paying during re-leasing/business ramp-up. Critical for: hospitality, retail, office. Without extended, owner absorbs ramp-up losses (typically 30-50% of total loss).

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.