People looking at spreadsheets. BI claim calculations are part science and part art. Most specialists within this niche will have credentials in forensic accounting. (Photo: BlueSky Image/Shutterstock)

A business interruption (BI) claim is likely to be triggered by either some form of property damage, a cyber event or a product recall/contamination issue. Policies often define business interruption or loss of business income using verbiage like ‘net profit plus continuing expenses’. The latter may include payroll for a determined period. This is known as the ‘bottom-up’ (BU) approach.

An easier method to follow, which ultimately should be reconciled to the BU approach is the ‘top-down’ (TD) method, which projects gross revenue, reduces it for any actual revenue earned during the indemnity period, and then further reduces it by what’s called a saved/discontinuing/non-continuing expense, usually expressed in percentages (e.g., cost of goods sold).

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including, and
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.