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 Hills is a city located in southern Orange County, California, United States. Its name refers to its proximity to Laguna Canyon and the much older Laguna Beach. Other newer cities nearby—Laguna Niguel and Laguna Woods—are similarly named.
According to the United States Census Bureau, the city has a total area of 6.7 square miles (17.3 km²). 6.7 square miles (17.3 km²) of it is land and 0.025 square miles (0.064 km²) of it (0.37%) is water.
Laguna Hills is built on one of the major land grants developed during the rancho era. Following Mexico's independence from Spain in 1821, those who had served in the government or who had friends in authority, were given vast lands for cattle grazing. Rancho Lomas de Santiago, Rancho San Joaquin, and Rancho Niguel covered much of the western portion of the Saddleback Valley. Don Juan Avila was granted the 13,000 Rancho Niguel on which Laguna Hills is located.