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.
Coto de Caza
"Coto de Caza (meaning hunting preserve in Spanish) is a census-designated place (CDP) and guard-gated private community in Orange County, California. The population was 14,799 at the 2017 census.
The CDP is a suburban planned community of about 4,000 homes and one of Orange County's oldest and most expensive master-planned communities. The project began in 1968, when it was envisioned as a hunting lodge, now the Lodge at Coto de Caza, and the community was completed in 2003. Coto de Caza also includes Los Ranchos Estates, a 355-acre rural community of 75 large custom homes. Los Ranchos Estates is a separate private community behind the gates of Coto de Caza and has its own homeowner's association.