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Smart business owners use business interruption insurance as a financial cushion

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Small business owners take many risks when first starting out. Many of them only carry the basic business insurance coverage to protect them. In addition, some new businesses do not see a profit for quite some time. Consequently, facing a disaster, such as a fire or building damage, could be enough to force struggling entrepreneurs right out of business. Learn how you can protect your California business with business interruption insurance.
What is Business Interruption Insurance?
Business interruption insurance helps to supply business owners with funds should their business suffer losses or damage requiring them to close temporarily. Interruption insurance could come to the rescue if a restaurant suffers a small kitchen fire and needs to close temporarily. Insurance could pay employee wages, pay for restorations and keep the power on.
Coverage
Business interruption insurance is available as an added endorsement to a BOP (business owner’s insurance policy) and some other business policies.
Coverage may include various business expenses such as the rental of a temporary business location due to building damage, or a temporary lack of power to the business. A business interruption policy might also cover lost income or profits if you cannot perform your service or your business cannot make sales temporarily.
Several factors determine costs of business interruption insurance, some of which include the type of business, and the business location. Contact your agent to inquire about business interruption insurance for your small business.

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