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.
La Palma is a city located in northern Orange County, California. Incorporated on October 26, 1955, the population was 15,408 at the 2000 census. It was originally incorporated as Dairyland, and was one of three dairy cities in the region (the other two being Dairy Valley in Cerritos and Dairy City in Cypress) but when the dairies moved east in 1965, its name was changed to La Palma, after the region's Spanish heritage and its main thoroughfare, La Palma Avenue. La Palma was listed in 2007 as the 16th best place to live among small cities (50,000 or less) in the United States by Money Magazine.
The telephone area code for La Palma is primarily 714 with a small portion of the city in the area code 562 (bordering Cerritos). The postal ZIP code is 90623.