If it is a job loss, that could be a problem.

When you do loose one it's a bit costly as most jurisdictions award double or triple damages but a loss is rare.

PGI--potential gross income- VCL--vacancy and collection losses+OI--other income (internet, etc)= EGI--effective gross income-OE---operating expenses such as taxes, insurance, etc (does not include debt service=NOI--net operating incomeAfter NOI subtract debt service (interest not principal) and then you have BTCF..before taxes cash flow

@Scott Nguyen I just had a client ask me this yesterday so I'll share what I told him...If you had to personally guarantee the mortgage on the property, which most investors do for their first few deals, you have personal risk of loss with the property and the LLC won't insulate you.

Has your insurance carrier already decided that it is a covered loss? 

But if you are incurring expenses to wind off the remainfjng jobs, you should report it even if there is a loss.

The key is mitigating surprises or risk of loss on your end as much as possible.  

The insurance will not cover this, they only cover loss of rent. 

(In full disclosure, Im NOT a ecommerce guy, rather a technologist - but I do know enough about the back-end systems to understand that erent had nothing in house... they were completely 3rd party vendors for everything and when one of those 3rd parties had an issue the entire house of cards collapsed)Don't have any answers on your out-of-pocket loss other than condolences...

If you put into your contract that you can cancel for any reason whatsoever, without loss of anything on your part, then the contract is a sham contract because there is no reciprocal obligation, no reciprocal consideration.