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 Niguel is an affluent city located in southern Orange County, California. The name ""Laguna Niguel"" is derived from the Spanish word ""Laguna"" which means lagoon, and the word ""Nigueli"" which was the name of a Juaneño Indian village that was once located on Aliso Creek. The population was 62,979 at the 2010 census, up from 61,891 at the 2000 census. The city was primarily built after 1980 as an unincorporated master planned community located in the San Joaquin Hills near Laguna Beach. Laguna Niguel contains a large range of housing, from condominiums to large mansions above the ocean. It borders Laguna Beach, Dana Point, San Juan Capistrano, Mission Viejo, Laguna Hills, and Aliso Viejo.
Laguna Niguel is located on the Rancho Niguel Mexican land grant of Juan Avila. He retained ownership until 1865, when a severe drought killed off most of his cattle. Lewis Moulton, owner of the Moulton Company, bought the area of modern-day Laguna Niguel in 1895, along with significant other portions of the surrounding area from farmers that were hard pressed to earn a living due to a local drought in the area.
In 1959, the Laguna Niguel Corporation, started by Cabot, Cabot & Forbes from Boston, made Laguna Niguel one of the first master planned communities in California. Victor Gruen and Associates, a Vienna architect, developed a community plan for 7,100 acres (29 km2). The Avco Community Developer in 1969 continued the plan, which by then held 6,500 residents.