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.
"Dana Point is a city located in southern Orange County, California. The population was 33,351 at the 2010 census. It has one of the few harbors along the Orange County coast, and with ready access via State Route 1, it is a popular local destination for surfing and was home to a legendary surf break called Killer Dana.
The city was named after the headland of Dana Point, which was in turn named for Richard Henry Dana, Jr., author of Two Years Before the Mast, which included a description of the area. Dana described the locale, including neighboring San Juan Capistrano, as ""the only romantic spot on the coast"". Although Dana described the anchorage as poor, it is now a developed harbor and contains a replica of his ship, the Pilgrim. The Pilgrim is used as a classroom by the Ocean Institute, which is located at the harbor. This area is designated California Historical Landmark #189.
One of the very few known specimens of the megamouth shark was caught off Dana Point in 1990. "