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.
Villa Park is a city in northern Orange County, California, near and surrounded by the City of Orange, and close to Anaheim Hills, that incorporated in 1962. As of the 2010 Census, the city had a population of 5,812, down from 5,999 at the 2000 census, achieving the status of the smallest city in Orange County by population (La Palma is Orange County's smallest city in area). Villa Park includes about 2,000 homes and the land is nearly 99% built out. The city is largely zoned for single-family residences and are located on larger lots that average about 20,000 square feet (1,900 m2) or 1/2 acre in size. Within the City Limits there is one small shopping center that includes a Ralph's ""Fresh Fare"" grocery store, three banks, a pharmacy with a postal substation, and a variety of stores and offices. City Hall, including a community room, and a branch of the Orange County Public Library are located adjacent to the City's only shopping Center.
Also nearby are some professional offices, and three restaurants, including Rockwell's Cafe & Bakery. There are a total of four public schools with the City, including Serrano and Villa Park Elementary Schools, Cerro Villa Middle School, and Villa Park High School. All four schools are operated by the Orange Unified School District, which also happens to be the largest employer within the City.
Perhaps ironically, there are no public parks within the entire City Limits. Many homes have pools or tennis courts, or both. Unlike the urban areas of Orange County which are situated west of the City, Villa Park has winding streets and it is known for having a rural feel with few sidewalks and limited street lights. Throughout the City are many many trees and flowers located in planted medians and parkways that contribute to a rural, green-belt like ambiance. Surrounded by the City of Orange, Villa Park appears as an enclave or ""perforation"" within the city of Orange. This is due largely to the fact that Villa Park's early unwillingness to annex land beyond Santiago Creek, to annex the lands east of a Southern California Edison Power Line Easement that sat between the City of Villa Park and Anaheim Hills, eventually being annexed by the City of Orange.