What would you do if you couldn’t conduct business for an extended period of time? Would you be able to survive if damage occurred and you were out of business for several weeks or months?
The answer for most small business owners is no.
Business interruption insurance can be as vital to your survival as a business owner as fire, flood, or any other type of business insurance. Most people would never consider opening a business without buying insurance to cover damage due to these types of risks.
Unfortunately, too many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises to the point where they were temporarily unable to conduct business.
Business interruption insurance covers you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire.
It also covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
How much is Business Interruption insurance?
The price of the business interruption policy is related to the risk of a fire or other disaster damaging your premises.
All other things being equal, the price would probably be higher for a restaurant than a real estate agency for example because of the greater risk of fire.
Also, a real estate agency can more easily operate out of another location.
Aliso Viejo, CA
Aliso Viejo is a suburb of Irvine with a population of 50,925. Aliso Viejo is in Orange County and is one of the best places to live in California. Living in Aliso Viejo offers residents an urban suburban mix feel and most residents own their homes. In Aliso Viejo there are a lot of restaurants, coffee shops, and parks. Many families and young professionals live in Aliso Viejo and residents tend to be liberal. The public schools in Aliso Viejo are highly rated. The planned community of Aliso Viejo’s original 6,600 acres were once part of the 26,000-acre Moulton Ranch, owned by the Moulton family, who took title in the 1890s to land originally granted to Juan Avila by the Mexican government in 1842. Over the years, portions of the ranch were sold and became Leisure World, Laguna Hills and Laguna Niguel. In 1976, the Mission Viejo Company purchased the remaining 6,600 acres to create a new planned community – Aliso Viejo – with a master plan for 20,000 homes for a planned population of 50,000. The master plan was approved by the Orange County in 1979, and homes were first offered for sale in March 1982. Aliso Viejo’s first family moved in that November. As part of the project, 2,600 acres were dedicated to Orange County as part of the Aliso and Wood Canyons Wilderness Park, and 800 acres were set aside for local parks, recreation, schools and community facilities. The Aliso Viejo Community Association (AVCA) was set up to manage the local parks and community open space. It was the first community-wide association of its kind in California and has the unique ability to provide a full-range of community services and facilities. Aliso Viejo was the first planned community in California to plan a balance between the projected resident work force and the number of projected jobs within its borders. Pacific Park, the centrally located 900-acre business park and town center, was expected to ultimately provide more than 22,000 jobs. Every home in Aliso Viejo was located about 1 1/2 miles from Pacific Park, to encourage live-and-work opportunities.