Six month's emergency savings

[TheContinentalOp]

Lots of experts recommend that individuals and families have 6 (or 9 or 12) months of savings to tide them over in the event of an emergency, like a loss of employment.

So what about businesses? There's already talk about firms closing or needing bailouts because of the fallout from the virus. Is there similar advice for how much emergency savings a company should have?

[dandarc]

"Working Capital" or "Current Assets" is what that is called in a business setting. Larger businesses of course tend to do better managing that than your mom and pop shops. But they also face pressure to operate very efficiently - sitting on a large amount of cash is not very efficient.

Business owner policies do generally include loss-of-income coverage, but the terms of exactly what is covered and when it kicks in varies.