Business Interruption Insurance
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 fire, flood, or any other type of business insurance.
Do You Have the Right Coverage?
Too many small business owners fail to think about how they would manage if a fire or other disaster damaged their 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's covered under your property policy, such as a fire. It also covers the revenue you would have earned, based on your financial records, had the disaster not occurred — plus operating expenses, like electricity, that continue during the closure.
How Much Does It Cost?
Pricing relates to the risk of a fire or other disaster damaging your premises. All else equal, a restaurant would likely pay more than a real estate agency, given the greater fire risk and the agency's ability to more easily operate from another location.