Things You'll Need:
- Financial records
- Business Owner Policy (BOP)
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Step 1
Review your current insurance policy to see what kind of coverage it provides. Many small businesses get a packaged policy known as a Business Owners' Policy (BOP) that covers a number of different things, including property damage and injury liability. A standard BOP should also include some type of business interruption insurance as well.
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Step 2
Examine your financial records and decide where your biggest loss of income would be if you had to close your doors for an undetermined amount of time. While small retail shops and restaurants may lose the most revenue by not being able to be open to customers, other businesses may find the biggest loss would be in having to rent a new base of operations. Knowing this information can help you get the business interruption insurance coverage that best suits your needs.
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Step 3
Determine the possible risks. Not all of California is vulnerable to the same type of disaster. Businesses operating in the San Bernardino Valley, for instance, are much more likely to be affected by wildfires. By the same token, businesses along the coastline from San Diego to San Fransisco have a greater chance of being affected by a strong earthquake.
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Step 4
Get disaster-specific policies in addition to your typical business interruption insurance coverage. Earthquakes are an excluded cause of loss in any business interruption policy, so you will need to purchase earthquake insurance separately. Likewise, while fire may be included as a cause of damage in your policy, the coverage will be limited. If your business is leveled by one of these disasters, you will need multiple insurance policies to help you rebuild, cover ongoing expenses and collect an income.
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Step 5
Check the California Department of Insurance website for up-to-date information about insurance agencies and insurance programs designed to help small businesses in the wake of a natural disaster (see Resources below). The website can also help match you with a insurance agent who can create a business interruption policy that fits the needs of your business.
