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.
"Costa Mesa is a city in Orange County, California. The population was 109,960 at the 2010 census. Since its incorporation in 1953, the city has grown from a semi-rural farming community of 16,840 to a primarily suburban and ""edge"" city with an economy based on retail, commerce, and light manufacturing.
Members of the Gabrieleño/Tongva and Juaneño/Luiseño nations long inhabited the area. After the 1769 expedition of Gaspar de Portolà, a Spanish expedition led by Father Junípero Serra named the area Vallejo de Santa Ana (Valley of Saint Anne). On November 1, 1776, Mission San Juan Capistrano became the area's first permanent European settlement in Alta California, New Spain.
In 1801, the Spanish Empire granted 62,500 acres (253 km2) to Jose Antonio Yorba, which he named Rancho San Antonio. Yorba's great rancho included the lands where the communities of Olive, Orange, Villa Park, Santa Ana, Tustin, Costa Mesa and Newport Beach stand today.
Costa Mesa, city, Orange county, southern California, U.S. The city lies on a coastal plateau overlooking the Pacific Ocean, at the mouth of the Santa Ana River, 37 miles (60 km) southeast of Los Angeles. With Newport Beach it forms Orange county’s “Harbor Area.”
The area was originally inhabited by Shoshone Indians, who formed a village named Lukup along the Santa Ana River (called Wanawna by the Shoshone). With the coming of the Spanish, the land was divided. The city site, once part of Rancho Santiago de Santa Ana and the Irvine Ranch, became the hot-springs resort of Fairview. In 1889, however, flooding damaged the railroad connection to the city, and thereafter farming became the chief industry. Principal crops included apples, strawberries, sweet potatoes, and tomatoes. Laid out in 1906 as the town of Harper, it was renamed Costa Mesa (Spanish: “Coastal Tableland”) in 1920 for its location. Oil drilling soon supplemented the economy, and the construction of expressways in the 1950s stimulated residential growth. Light industries were developed, and the city is now an industrial and commercial centre for Orange county.
Costa Mesa hosts the annual Orange County Fair. The city is the seat of Orange Coast (community) College (1948) and Vanguard University of Southern California (founded as Southern California College in 1920 at Pasadena; relocated 1950). The Estancia (1818), a station of Mission San Juan Capistrano, has been restored as a historical monument. The Segerstrom Center for the Arts (formerly called Orange County Performing Arts Center) opened in 1986. Inc. city, 1953. Pop. (2000) 108,724; (2010) 109,960."