# ASC 220-30-05: Income Statement—Reporting Comprehensive Income — Business Interruption Insurance — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/220/30/#05-overview-and-background)

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## ASC 220-30-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/220/30/#05-overview-and-background)

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##### [220-30-05-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-05-1)

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This Subtopic provides presentation and disclosure guidance for [business interruption insurance](https://asc.understandingaccounting.org/glossary/b/#business-interruption-insurance "Insurance that provides coverage if business operations are suspended due to the loss of use of property and equipment resulting from a covered cause of loss. Business interruption insurance coverage generally provides for reimbursement of certain costs and losses incurred during the reasonable period required to rebuild, repair, or replace the damaged property.").

##### [220-30-05-2](https://asc.understandingaccounting.org/asc/220/30/#220-30-05-2)

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The types of costs and losses covered by business interruption insurance typically include the following:

1.  a
    
    [Gross margin](https://asc.understandingaccounting.org/glossary/g/#gross-margin "The excess of sales over cost of goods sold. Gross margin does not consider all operating expenses.") that was lost or not earned due to the suspension of normal operations
    
2.  b
    
    A portion of fixed charges and expenses in relation to that lost gross margin
    
3.  c
    
    Other expenses incurred to reduce the loss from business interruption (for example, rent of temporary facilities and equipment, use of subcontractors, and so forth).