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.
Los Alamitos (""The Little Cottonwoods"" in Spanish) is a small city in Orange County, California. The city was incorporated in March 1960. The population was 11,449 at the 2010 census, down from 11,536 at the 2000 census. It is often mistakenly thought to include the adjacent but unincorporated community of Rossmoor (population just under 11,000) which uses Los Alamitos as its mailing address. Although Rossmoor is not part of Los Alamitos, it is speculated that it may be annexed to the city, or Rossmoor, Seal Beach, and Los Alamitos will combine to form one city.
The USA Water Polo National Aquatic Center is located on the US Military Los Alamitos Joint Forces Training Base. The training base includes the Los Alamitos Army Airfield.
The clusters of cottonwood trees Spanish explorers saw more than 200 years ago inspired Los Alamitos' name, but it is the sugar beet that figured most prominently in the area's later history. The history of the area during the Californio period and after U.S. annexation is detailed in the article on Rancho Los Alamitos.