Glossary

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.

Also called: restoration period, indemnity period, period of indemnity

In the ISO business income form, CP 00 30, the period of restoration sets when payment for lost income starts and stops. It begins 72 hours after the direct physical loss for Business Income, and immediately for Extra Expense. It ends on the earlier of two dates: when the damaged property should be repaired, rebuilt or replaced with reasonable speed and similar quality, or when the business resumes operations at a new permanent location.

Two traps catch owners. First, the test is how long restoration should take, not how long it does. Slow permits, contractor shortages and supply delays that stretch a rebuild can fall outside the period. Increased time caused by enforcing building codes is also excluded, which is why ordinance or law needs its own extension. Say a rebuild should take six months but takes nine because of permitting (a hypothetical): the period of restoration measures six.

Second, the end of the period is not the end of lost sales. Customers do not return the day you reopen. The form's Extended Business Income provision adds up to 60 days of lost income after operations resume, and an optional Extended Period of Indemnity can lengthen that. Choose limits and the waiting period with the realistic timeline in mind, not the best case. The guide on how to calculate a business income limit walks through the numbers, and business interruption insurance: how business income coverage works explains the coverage as a whole. See business income for the definition of the income being protected.

Last reviewed October 10, 2026

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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. Civil authority Business income coverage for a shutdown when a government order blocks access to your premises because of damage to nearby property. Contingent business income Coverage for income lost when physical damage at a supplier, customer or other business you rely on, not your own premises, slows or stops your operations. Ordinance or law Coverage for the extra cost of rebuilding to current building codes after a covered loss, which a standard property policy excludes or sharply limits.

Related guides

Writing a business continuity plan: a step-by-step guide How to write a business continuity plan: impact analysis, recovery times, plans for people, sites, IT and suppliers, testing, and how it fits your insurance. Documenting a business interruption claim, from day one to final payment How to prove a business income and extra expense loss under ISO form CP 00 30: the records insurers ask for, how the loss is measured and where claims stall. Business interruption insurance: how business income coverage works What business income coverage pays after a covered physical loss, how the 72-hour wait, period of restoration and extended income work, and where the gaps are. Filing business insurance claims after a hurricane or wildfire How to protect property, report the loss, sort wind from flood and smoke from fire, claim business income and work the clocks after a hurricane or wildfire. Civil authority coverage: when an order closes your doors Civil authority coverage pays lost income when a government order blocks access after nearby damage. The one-mile, 72-hour and four-week limits, and case law. A restaurant kitchen fire claim, step by step, from first call to final check A hypothetical composite walkthrough of a kitchen fire claim: business income, extra expense, spoilage, coinsurance, proof of loss, appraisal and a timeline.

Related tools

Business income (interruption) limit calculator Estimate the business income limit you need after a covered loss, including extended recovery and extra expense, then test it against your coinsurance clause.

Related en español

Seguro de interrupción de negocios: cómo funciona la cobertura de ingresos Qué paga la cobertura de ingresos del negocio tras una pérdida física cubierta: la espera de 72 horas, el periodo de restauración, la extensión y los huecos.