BUSINESS INCOME–SAMPLE MONTHLY LIMITATION WORKSHEET

(December 2025)

NOTE: This worksheet is useful for calculating an insurance limit when choosing Monthly Limitation Optional Coverage.

BUSINESS INCOME RISK CATEGORY

Select the following type of business that best describes the named insured's operations:

___ Mercantile/Non-Manufacturing ___ Manufacturing and Mining ___ Rental Properties

MONTHLY LIMIT OF INDEMNITY

Select the recovery period based on the number of months the named insured expects to be out of business:

___ 1/3 of Business Income per month

___ 1/4 of Business Income per month

___ 1/6 of Business Income per month

NOTE: The maximum limit available for a single month is the fraction selected multiplied by the limit selected. Coverage continues until the limit is exhausted or the period of restoration ends.

DETERMINE OPTIONS TO BE USED

___ Extra Expense

___ Extended Period of Indemnity (Number of days)

___ 60 ___ 90 ___ 120 ___ 150 ___ 180 ___ 270 ___ 360 ___ Other (specify)

DETERMINE THE LOCATION LIMIT

Complete a separate worksheet for each location where coverage is desired.

Element / Component	Average estimate for any period of 30 consecutive days	Maximum estimate for any period of 30 consecutive days
Total Net Sales	$	$
Add Other Earnings	$	$
Equals Total Revenue	$	$
Subtract Non-Continuing Payroll	$	$
Subtract Cost of Goods Sold	$	$
Subtract Non-Continuing Utilities	$	$
Subtract Other Special Deductions	$	$
Equals Basic Business Income Monthly Amount	$	$
Multiply the monthly amount by the number of months, either 3, 4, or 6, based on the 1/3, 1/4, or 1/6 recovery option selected	X	X
Equals Basic Business Income Amount	$	$
Add Extra Expense from Extra Expense Worksheet	$	$
Add Extended Business Income and Optional Extended Period of Indemnity	$	$
Equals Total Final Amount	$	$

The total from the average column should define the minimum insurance limit. To avoid underinsurance, it is recommended to use the total from the maximum column.

The average amount is only suitable if the named insured's operations remain very stable from month to month, with no fluctuations in business activity.

Losses frequently occur during peak times due to heightened activity, which can lead to accidents, maintenance issues, excess inventory, and more variable customer traffic.

Related Article: Business Income Alternatives to Coinsurance

LIMITS OF INSURANCE

Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______
Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______
Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______
Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______
Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______
Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______
Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______
Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______
Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______
Limit: $ ________________	Location Number _____	Building Number _____	Monthly Limitation _______

Comments:

____________________________________________________________________________________________

____________________________________________________________________________________________

____________________________________________________________________________________________

____________________________________________________________________________________________

Named Insured's Signature:

________________________________________________________________________________________

Title:

_________________________________________________________________________________________

Date:

____________________________________________________________________________________________

Producer's Signature:

____________________________________________________________________________________________

Date: