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.
Tustin is a city located in Orange County, California, in the Los Angeles metropolitan area. As of the census of 2010, Tustin had a population of 75,540. The city is located next to the county seat, Santa Ana, and does not include the Tustin Foothills.
Because of a top 10% ranking in per capita and one of the shortest commutes in Southern California, the city was chosen in 2009 by Forbes as one of the top 25 towns to live well in America.
Members of the Tongva and Juaneño/Luiseño nations long inhabited this area. After the 1769 expedition of Gaspar de Portolà, a Spanish expedition led by Father Junipero Serra named the area Vallejo de Santa Ana (Valley of Saint Anne). On November 1, 1776, Mission San Juan Capistrano became the area's first permanent European settlement in Alta California, New Spain.