How Much Business Interruption Coverage Do you Need?

You’re gonna have to take into account your revenue and expenses and you’re gonna have to boil that down to one simple number.

You’re gonna have to say, ok, if my business is down for X number of days, what does that cost to me as a business? And that’s the number that you need to walk through with your insurance broker. I’m sure there’s tools and means that you’re able to help and advise on as well, Matt from, from Petschauer. And of course, the finance people in the business are going to have to be heavily involved in that process.

You also need to have an understanding of what we call your RTO, which is your return to operation. So how long is it going to take for your IT team and maybe additional external resources outside of that, for them to rebuild, restore and get your business back to full operation?

Now, there’s ways and means of doing that. It depends on the systems you have in place and the type of platforms you use to run the operation of your business. However, even when you do have things up to what we might call system-wise back up and running, there’s also things that can happen afterwards that can interrupt the business. For instance, you may get all your systems back up and running, but you may find that you have some data corruption.

I was reading some information yesterday on a site, a business intelligence source called Statista. They were saying the average interruption lasted 22 days in 2023 which is a very long time. Now, I’m sure systems are up much quicker than that. But then there was issues afterwards. Systems and processes may not have worked exactly like they wanted to. So it’s a complex thing to do, but it’s a process you definitely need to go through and it’s definitely a dollar and a number that you need to at least have a thought about or an estimate of.

We’d be happy to review your insurance coverage options with you! Give us a call at 516-419-5050 or visit