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.
Laguna Beach is a seaside resort city and artist community located in southern Orange County, California, United States, approximately 19 miles (31 km) southwest of the county seat of Santa Ana. Its population was 22,723 at the 2010 census, down from 23,727 at the 2000 census. Laguna Beach is the second oldest city in Orange County, second to Anaheim.
Settlers arriving after the American Civil War found scarce amounts of land available for homesteading, and one such tract, known then simply as ""the public lands"" was the coastal strip from Laguna Canyon to Three Arch Bay. During the 1870s, a small community named Arch Beach had been started at the mouth of Bluebird Canyon. By the early 1880s most of the land around its small Post Office and general store had been subdivided. At about the time that Orange County separated from Los Angeles County and became independent in 1889, the community was caught in an economic downturn.
The city, picturesquely situated among stunning cliffs, coves, and canyons, developed as a coastal resort and art colony, and it now draws millions of visitors annually. The Festival of Arts and Pageant of the Masters is held at Irvine Bowl, a natural amphitheatre just east of the city; held nightly in July and August, the pageant re-creates contemporary and classical artworks with elaborate sets and people posing to resemble characters in the original art, accompanied by a live orchestra. Other notable local attractions include the Laguna Art Museum, formed from the Laguna Beach Art Association (founded 1918), and several arts festivals. Several wilderness parks are east of the city. Mission San Juan Capistrano is a few miles southeast, and Crystal Cove State Park is north of the city. Inc. 1927. Pop. (2000) 23,727; (2010) 22,723.