Damages of business interruption

Damages for business interruption

When you have to be absent from work due to the traffic accident injury, you can claim compensation for damages for business interruption to the at-fault party. The losses for business interruption are the wages or income you could not get because you had to be absent from work due to traffic accident injuries. In this article, we take a closer look at how to calculate the business interruption compensation and how to claim it.

How to calculate the damages for business interruption

Damages for business interruption is calculated based on your income before the traffic accident. It bases on income per day and the number of days of absence. It is calculated by multiplying them.

However, the specific amount of compensation depends on to which organization to claim them. There are three standards for the calculation: CALI’s standard, voluntary insurance standard, and judicial standard. Each of the detail are as follows:

CALI’s standard -JPY5,700 per day-

In principle, CALI’s payout for damages for business interruption is JPY5,700 per day of absence from work. However, if the car accident victim can prove the specific amount of damages for business interruption, the amount of payout per day can be increased up to JPY19,000. So, in the case where the at-fault driver is only with CALI and not with voluntary insurance, JPY5,700 per day will be the basic amount the victim can get as compensation for the day of absence from work.

However, note that the upper limit of the CALI’s payout for an injured victim is JPY1,200,000. The total of other cost items for compensation like medical expenses, consolation money for hospitalization, and so on should be within the upper limit. So if the amount of compensation is already more than the upper limit, the victim has to claim the business interruption coverage to the at-fault driver himself or his voluntary insurance company.

Voluntary insurance’s standard

If car accident victims claim damages for business interruption to voluntary insurance companies, the amount depends on each company’s standard, which is not disclosed.

Judicial standards

Judicial standards are the amount that the court approves when the victim file a suit against the at-fault party. That is as follows:

Basic revenue per day × number of days of leave


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