Glossary

Actual loss sustained

A way of paying business income claims with no dollar limit: the insurer reimburses documented lost income and expenses for a stated period.

Also called: ALS, actual loss sustained coverage, ALS business income

Actual loss sustained (ALS) swaps a dollar limit for a time limit. The policy pays the net income you lost and the normal expenses that continued, as far as you can document them, during a stated period. There is no limit to run out and no worksheet to fill in.

The ISO businessowners form (BP 00 03) works this way. It pays business income on an actual-loss-sustained basis for loss occurring within 12 consecutive months after the physical damage, without coinsurance. Carrier BOP forms and package-policy endorsements vary, so read the edition and any schedule that changes the 12 months. A stand-alone ISO CP 00 30 business income form, by contrast, pays up to the limit shown and applies coinsurance when the declarations show a percentage.

Say a dental office is closed five months after a fire and its documented lost profit plus continuing payroll, rent and loan payments come to $240,000. An ALS clause pays that sum even if a limit-based form would have stopped at $150,000.

The catch is proof and the clock. You carry the burden of documenting the number, and a 14-month rebuild leaves months uncovered. See how to calculate business income limits for the limit-based alternative, and add extra expense where it is not included.

Last reviewed October 10, 2026

In the index now

Related terms

Business income Property coverage that replaces net income and continuing operating expenses, including payroll, while a covered physical loss suspends operations. Extra expense Property coverage for the added costs of staying open after a covered loss, such as a temporary location, rented equipment or overtime. Period of restoration In a business income policy, the time for which lost income is covered, from a waiting period after damage until repairs should be done or operations resume. Coinsurance A property policy condition requiring you to insure to a set percentage of value, or share the loss. (Health plans use the word for a cost share.) Civil authority Business income coverage for a shutdown when a government order blocks access to your premises because of damage to nearby property.