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.
Seal Beach is a city in Orange County, California. As of the 2010 census, the population was 24,168, up from 24,157 at the 2000 census. The city was incorporated on October 25, 1915.
Seal Beach is located in the westernmost corner of Orange County. To the northwest, just across the border with Los Angeles County, lies the city of Long Beach and the adjacent San Pedro Bay. To the southeast are Huntington Harbour, a neighborhood of Huntington Beach, and the unincorporated community of Sunset Beach. To the east lie the city of Westminster and the neighborhood of West Garden Grove, part of the city of Garden Grove. To the north lie the unincorporated community of Rossmoor and the city of Los Alamitos.
Early on, the area that is now Seal Beach was known as ""Anaheim Landing"", as the boat landing and seaside recreation area named after the nearby town of Anaheim.