In evaluating business interruption risks, insurers consider which of the following?

In evaluating business interruption risks, insurers primarily focus on the potential revenue loss and duration of disruption. This evaluation is crucial because business interruption insurance is designed to cover lost income that a business suffers due to a disruption in its operations, such as a fire or natural disaster. Understanding the potential magnitude of revenue loss helps insurers assess the financial impact on the business during the interruption period. Additionally, the duration of the disruption informs insurers about how long the business may be unable to operate at full capacity or at all, which is essential for calculating the necessary coverage limits.

Evaluating both the potential revenue loss and the expected duration allows insurers to tailor policies that effectively meet the needs of businesses while managing their own risk exposure. In contrast, other factors mentioned, such as employee count, historical industry performance, or the insured's personal characteristics, while they may provide context, do not directly address the financial implications of business interruption in the same immediate way that assessing potential losses does.