Property · Insurance Term
Business Income Worksheet (BI Worksheet)
Definition
A business income worksheet is a form used to estimate how much business income coverage you need. It projects your revenue and expenses for the coming year and removes costs that would stop during a shutdown, giving a basis for the limit.
In Plain English
Choosing a business income limit by guesswork is risky. The worksheet starts with projected revenue for the next 12 months, subtracts costs that would not continue during a shutdown (such as cost of goods sold), and leaves the income and expenses you would need to replace.
Many insurers require a signed worksheet before granting business income agreed value terms, which suspend coinsurance. Without one, a business income coinsurance clause may reduce your claim if your limit is too low.
Accurate numbers help at claim time too. A forensic accountant working the claim will compare your actual results to the projections, so use realistic figures from your financial statements.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a convenience store projects $2,000,000 in annual sales and $1,400,000 in cost of goods. The worksheet subtracts the cost of goods and arrives at $600,000 of income and continuing expenses to insure for a 12-month restoration period.
What to Watch For
- Use next year's projected numbers, not just last year's.
- Decide whether 12 months is enough time to rebuild and reopen.
- Ask whether ordinary payroll is included or limited.
- Have your accountant review the worksheet before you sign it.
Last updated October 14, 2026 · Primesure editorial team · How We Write