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.
Las Flores is an unincorporated census-designated place (CDP) in Orange County, California, located adjacent to the City of Rancho Santa Margarita, California. The population was 5,971 at the 2010 census, up from 5,625 at the 2000 census. Las Flores does not have its own ZIP Code and is served by the same ZIP Code as adjacent Rancho Santa Margarita. The Rancho Santa Margarita dog/skate park is located in the CDP and is served by the Orange County Sheriff's Dept. and Orange County Fire Authority.
Las Flores is a suburb of Irvine with a population of 5,877. Las Flores is in Orange County and is one of the best places to live in California. Living in Las Flores offers residents a dense suburban feel and most residents own their homes. In Las Flores there are a lot of coffee shops and parks. Many families and young professionals live in Las Flores and residents tend to lean conservative. The public schools in Las Flores are highly rated.