What it covers
During the period of restoration, BI coverage pays:
- Lost net income (based on historical income patterns)
- Continuing normal operating expenses (rent, payroll, utilities)
- Extra expenses needed to resume operations faster
When it ends
The period of restoration ends when:
- The business is actually restored, OR
- The business reasonably could have been restored (using commercially reasonable diligence)
Whichever comes first. Carriers sometimes argue the business could have been restored faster than it actually was: this is where documentation matters.