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.
Huntington Beach is a seaside city in Orange County in Southern California. According to the 2010 census, the city population was 189,992; making it the largest beach city in Orange County in terms of population. It is bordered by the Pacific Ocean on the southwest, by Seal Beach on the northwest, by Costa Mesa on the east, by Newport Beach on the southeast, by Westminster on the north, and by Fountain Valley on the northeast.
It is known for its long 8.5-mile (13.7 km) beach, mild climate, and excellent surfing. The waves are a unique natural effect caused by edge-diffraction of ocean swells by the island of Catalina, and waves from distant hurricanes.
The area was originally occupied by the Tongva people. European settlement can be traced to a Spanish soldier, Manuel Nieto, who in 1784 received a Spanish land grant of 300,000 acres (1,200 km2), Rancho Los Nietos, as a reward for his military service and to encourage settlement in Alta California. Nieto's western area was reduced in 1790 because of a dispute with the Mission San Gabriel, but he retained thousands of acres stretching from the hills north of Whittier, Fullerton and Brea, south to the Pacific Ocean, and from today's Los Angeles River on the west, to the Santa Ana River on the east.
Huntington Beach, city, Orange county, southwestern California, U.S. Situated south of Los Angeles, it lies along the Pacific Coast Highway. Originally the territory of Gabrielino (Tongva) Indians, the city was formed from parts of Rancho Las Bolsas and Rancho Los Alamitos. It was first called Shell Beach and after its subdivision (1901) was known as Pacific City. To encourage its promotion as a seaside resort, it was renamed Huntington Beach for the railroad magnate Henry E. Huntington. The discovery of oil (1920) beneath the town site spurred the residential growth of the city and provided a basis for the city’s industrial development; after 1930 offshore tideland oil production began, but the oil industry has since undergone a substantial decline. Tourism, service industries, and technology assumed an increasing role in the city’s changing economy. Major economic assets include Boeing’s space centre and a large steam generating plant. Huntington Pier (originally built in 1914) is a popular tourist attraction.
The city has been known for decades as Surf City, and Huntington State Beach is still a favourite venue for surfing. The Bolsa Chica Ecological Reserve preserves a coastal salt marsh that is home to several hundred bird species and millions of migrating birds. The city contains a community college established in 1966. Inc. 1909. Pop. (2000) 189,594; (2010) 189,992.