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.
Rancho Santa Margarita
Rancho Santa Margarita is a city in Orange County, California. One of Orange County's youngest cities, Rancho Santa Margarita is a master planned community set upon rolling hills. Most neighborhoods in Rancho Santa Margarita are within various homeowners associations. The population was 47,853 at the 2010 census, up from 47,214 at the 2000 census.
Although it is named for Rancho Santa Margarita y Las Flores, which was in San Diego County, the city limits fall within the borders of Rancho Mission Viejo.
The city seal has the brands of Rancho Mission Viejo and Rancho Santa Margarita and Las Flores on the border, with artwork containing Santiago Peak in the background. The tower in the foreground symbolizes the Rancho Santa Margarita Lake Tower."