Business Interruption Loss Calculation Worksheet

BUSINESS INTERRUPTION LOSS CALCULATION WORKSHEET

Case Name: [________________________________]
Case/Claim Number: [________________________________]
Date of Loss Event: [__/__/____]
Date Prepared: [__/__/____]
Prepared By: [________________________________]

SECTION 1: BUSINESS INFORMATION

Business Legal Name: [________________________________]
DBA (if applicable): [________________________________]
Business Address: [________________________________]
City/State/ZIP: [________________________________]
Business Type: [________________________________]
Industry/NAICS Code: [________________________________]
Tax ID/EIN: [________________________________]
Fiscal Year End: [________________________________]

Business Structure:
☐ Sole Proprietorship
☐ Partnership
☐ LLC
☐ S Corporation
☐ C Corporation
☐ Other: [________________________________]

SECTION 2: LOSS EVENT DESCRIPTION

Nature of Loss Event:
☐ Property Damage (fire, flood, storm)
☐ Third-Party Negligence
☐ Breach of Contract
☐ Supply Chain Disruption
☐ Government Action/Shutdown
☐ Other: [________________________________]

Brief Description of Event:
[________________________________]
[________________________________]
[________________________________]

SECTION 3: PERIOD OF LOSS

Date Business Interrupted: [__/__/____]
Date Business Resumed (or expected): [__/__/____]
Total Period of Interruption: [____] days / [____] months

Period of Restoration Analysis:

SECTION 4: CALCULATION METHOD SELECTION

Select Primary Calculation Method:

☐ Top-Down (Gross Receipts) Method

• Lost Sales minus Avoided Expenses
• Best for: Retail, restaurants, service businesses

☐ Bottom-Up (Net Income) Method

• Lost Net Income plus Continuing Fixed Expenses
• Best for: Manufacturing, complex operations

☐ Yardstick Method

• Comparison to similar business/location
• Best for: New businesses, volatile markets

☐ Before-and-After Method

• Historical performance comparison
• Best for: Established businesses with stable history

SECTION 5: TOP-DOWN (GROSS RECEIPTS) METHOD

A. Projected "But-For" Revenue

Adjustments to But-For Revenue:

Total Projected But-For Revenue for Loss Period: $ [________________]

B. Actual Revenue During Loss Period

C. Lost Revenue Calculation

D. Avoided (Saved) Expenses

E. Net Lost Profit (Top-Down)

SECTION 6: BOTTOM-UP (NET INCOME) METHOD

A. Historical Net Income Analysis

B. Lost Net Income Calculation

C. Continuing Fixed Expenses

D. Net Lost Profit (Bottom-Up)

SECTION 7: EXTRA EXPENSE CALCULATION

Extraordinary Expenses Incurred to Resume/Continue Operations:

SECTION 8: EXTENDED BUSINESS INCOME LOSS

Post-Restoration Revenue Recovery Analysis:

Extended Period Lost Profit:
(Shortfall × Historical Profit Margin [____]%) = $ [________________]

SECTION 9: MITIGATION ANALYSIS

Mitigation Efforts Undertaken:

☐ Temporary relocation
☐ Outsourcing production/services
☐ E-commerce/online sales
☐ Reduced hours of operation
☐ Staff redeployment
☐ Accelerated repairs
☐ Other: [________________________________]

Mitigation Credits:

SECTION 10: BUSINESS INTERRUPTION LOSS SUMMARY

SECTION 11: SUPPORTING DOCUMENTATION CHECKLIST

Financial Records:
☐ Tax returns (3 years)
☐ Profit and loss statements (monthly, 3 years)
☐ Balance sheets
☐ General ledger
☐ Bank statements
☐ Sales records/invoices
☐ Accounts receivable aging
☐ Accounts payable records

Operational Records:
☐ Employee payroll records
☐ Contracts (customers, suppliers)
☐ Lease agreements
☐ Insurance policies
☐ Business plan/projections
☐ Marketing materials

Loss Documentation:
☐ Incident reports
☐ Photos of damage
☐ Repair estimates/invoices
☐ Correspondence with contractors
☐ Extra expense receipts
☐ Temporary location records

SECTION 12: EXPERT ANALYSIS NOTES

Forensic Accountant: [________________________________]
Date of Analysis: [__/__/____]

Key Assumptions:
[________________________________]
[________________________________]
[________________________________]

Methodology Notes:
[________________________________]
[________________________________]
[________________________________]

CERTIFICATION

I certify that the financial information and calculations in this worksheet are based on actual business records and reasonable projections. I understand this worksheet is for settlement calculation purposes.

Signature: ________________________________________ Date: [__/__/____]

Print Name: [________________________________]

Title: [________________________________]

SOURCES AND REFERENCES

• Cherry Bekaert: Calculating Business Interruption Lost Profits
• J.S. Held: Lost Business Profit Damages Claims
• Carr, Riggs & Ingram: Calculating Business Interruption Loss
• ICW Group: Business Interruption Worksheets

This worksheet is provided for informational purposes only. Business interruption claims are complex and typically require analysis by a qualified forensic accountant. Legal counsel should be consulted regarding applicable law and evidentiary requirements.