Compensation is based on the loss of gross profit or revenue during the indemnity period, as defined in the policy, and considers fixed costs and net profit.

The indemnity period typically ranges from 6 to 24 months, depending on the nature of the business and the time required to restore normal operations.

Pandemics and lockdowns are generally excluded unless specifically endorsed; coverage applies only when the interruption results directly from physical damage insured under the property policy.

It is generally issued in conjunction with a Property Insurance policy, as the trigger for coverage is physical damage to insured assets.