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.
Ladera Ranch is a census-designated place and a planned community located in south Orange County, California just outside the city limits of San Juan Capistrano, Rancho Santa Margarita and Mission Viejo.
The community has several features that differentiate it from most others. For example, many traffic speed-reducing measures were put into use. Roundabouts, for example, are commonplace on smaller intersections. Narrow street widths are characteristics of Ladera Ranch's small residential streets. Landscaped street medians are common, even on two-lane collector streets like O'Neill, Crown Valley, and Sienna Parkways.
Within Ladera Ranch are two different types of areas: villages and neighborhoods. Individual builders produce an area that is called a neighborhood. There are ten or more neighborhoods per village, and there are nine villages.