What BI coverage pays
Commercial BI coverage pays the net income the business would have earned during the period of restoration, plus ongoing operating expenses that continue regardless of operations. Typical components:
- Lost profits: calculated from historical financials (monthly P&Ls, prior-year same-period)
- Continuing operating expenses: rent, utilities, insurance, minimum payroll, debt service
- Extra expense: the additional cost to continue operations at a temporary location or with workarounds
- Contingent BI: when the loss is at a supplier or major customer that affects your business
- Leader property: when a nearby anchor tenant's closure affects foot traffic
Period of restoration
The covered period runs from the date of loss until the property is or reasonably should have been repaired. Typical carrier disputes:
- Start date: carrier argues the business could have operated partially; policyholder argues full shutdown
- End date: carrier argues the property is restored; policyholder argues equipment calibration, staff rehire, or customer return period extends it
- Extended period: most policies offer 30–60 days of extended BI after reopening; often forgotten
Why commercial BI claims are commonly underpaid
- Weak income documentation. Proving lost income requires clean monthly financials. Many small businesses submit bank statements and hope for the best: this gets heavily discounted.
- Contingent BI overlooked. A supplier fire, port closure, or upstream event can trigger BI even if your property is undamaged.
- Payroll treatment disputed. Ordinary payroll is generally excluded (you're not producing); key employee and minimum necessary payroll is often included.
- Period of restoration shortened. Carrier declares the business "able to reopen" when operational capacity isn't actually restored.
- Extra expense not claimed. Temporary location rent, expedited shipping, overtime to catch up: all covered, often missed.
Documentation checklist
- 3 years of monthly P&Ls
- Monthly bank statements
- Tax returns (federal and state)
- Payroll registers
- Lease, utilities, insurance contracts (fixed costs)
- Customer order / invoice history (for contingent BI calculations)
- Seasonal adjustment factors (if the loss happened in a peak or low period)
How Ocean Point handles commercial BI claims
- Engage a forensic accountant from the outset (CPA with BI experience).
- Document the period of restoration with contractor schedule and staff return dates.
- Calculate lost net income with full backup (not bank-statement summary).
- Track extra expense in a dedicated ledger.
- Negotiate or escalate based on the financial record.
Who leads commercial claims at Ocean Point
Eli Goins (FL DFS #P159790) leads commercial and mixed-use claims. Licensed Florida public adjuster representing commercial policyholders statewide.