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.
Placentia is a city in northern Orange County, California. The population was 50,533 at the 2010 census, up from 46,488 at the 2000 census. This includes the community of Atwood, which is included in the city of Placentia, and is located in its southernmost quadrant.
Primarily known as a bedroom community, Placentia is known for its quiet neighborhoods and strong public safety. In the southwest, or downtown area, is the Placita-Santa Fe District, which boasts some of the best Mexican restaurants in Orange County. People come from all parts of Orange County to dine in the popular downtown area.
Currently, Placentia has a $20,000,000 metrolink project scheduled to start in the downtown area in 2013. This project is in conjunction with the Orange County Transit Authority (OCTA), and will assist in the continued revitalization of the area, which is also scheduled for the building of more transit oriented housing to complement the train station, mixed use, retail and entertainment. All designed to enhance Placentia's unique presence in Orange County.