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.
San Juan Capistrano
San Juan Capistrano, city, Orange county, southern California, U.S. Located near the Pacific coast, it lies halfway between San Diego and Los Angeles. The seventh in the California chain of 21 Franciscan missions, Mission San Juan Capistrano was founded in 1776 by Father Junípero Serra and named for the Neapolitan crusader Saint John of Capistrano. The mission was constructed 1797–1806 and was badly damaged in 1812 by an earthquake that wrecked its cruciform church and killed 29 people. The church remains a crumbled ruin with arches, quadrangle, and garden; there has, however, been some restoration of the mission buildings, including the adobe Serra Chapel (still in use). Settlement grew up around the mission, which has gained fame through its swallows, which reputedly fly off on St. John’s Day (October 23) and return “miraculously” to their mission nests on St. Joseph’s Day (March 19). Their departure and return are celebrated by fiestas.
The city is populated in part by descendants of early Spanish, Mexican, and Indian settlers; it experienced significant residential development during the last decades of the 20th century. Cleveland National Forest is east of the city, and many fine beaches are nearby. Inc. 1961. Pop. (2000) 33,826; (2010) 34,593.
San Juan Capistrano is a city in southern Orange County, California, located approximately 23 miles (37 km) southeast of Downtown Santa Ana. The current OMB metropolitan designation for San Juan Capistrano and the Orange County Area is “Santa Ana-Anaheim-Irvine, CA.” The population was 34,593 at the 2010 census, up from 33,826 at the 2000 census. The city was created around Mission San Juan Capistrano, and many of the homes and strip malls resemble the Spanish architecture that compose the building. It is home to the widest variety of homes in Orange County, including those built prior to 1900 in its central district (some being adobes from the 18th century), a number of 10 million-dollar homes in the gated communities of the hills, and working ranches in its foothills. San Juan Capistrano is probably best known for the annual migration of the cliff swallows that reputedly migrate each year from Argentina to the Mission San Juan Capistrano.
The 2010 United States Census reported that San Juan Capistrano had a population of 34,593. The population density was 2,419.9 people per square mile (934.3/km²). The racial makeup of San Juan Capistrano was 26,664 (77.1%) White, 193 (0.6%) African American, 286 (0.8%) Native American, 975 (2.8%) Asian, 33 (0.1%) Pacific Islander, 5,234 (15.1%) from other races, and 1,208 (3.5%) from two or more races. Hispanic or Latino of any race were 13,388 persons (38.7%).