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Do not Forget insurance When it Comes to a Home
Based Business
by Ed Watkins
Published on this site: May 17th, 2007 - See
more articles from this month
Many people wrongly assume that if they start a home based
business their homeowner's insurance policy will cover them in
the event of a problem. This is not always the case. It is
important to look into all of the ins and outs of insuring a
home based business before you start one so you will not be
left in a bad way if a problem arises, such as your computer is
stolen or there is a fire in your home office.
First thing you must do to avoid unsettling surprises in the
future is to have a talk with your insurance broker and let him
or her know of your plans to start a home based business. In
most instances it is not a costly affair to add riders for your
business onto your pre-existing homeowner's policy in order to
cover you for any ordinary risks that you are taking in
starting a new business. Make sure to find out if it is
necessary to purchase separate insurance policies for a variety
of types of business coverage because not everyone's insurance
needs for their business are identical.
Take a cryptic look at all of your business equipment as well
as furnishings such as your desk and chairs, etc. and carefully
evaluate what it would cost you to replace these items in the
event of a break in, a fire, a flood or any other type of
disastrous situation. Include every single item on your list,
even down to the software on your computer and your mouse and
mouse pad. Choose the highest deductible possible when insuring
all of your property and ensure that the insurance coverage is
for the complete replacement cost of all items and not the
depreciated value of the items.
You will need to have liability insurance for customers or
clients who come to your home. This even includes the mailman
and the UPS delivery person. Accidents can happen, such as a
person slipping on ice in your driveway in the winter months so
be prepared by getting insurance to protect yourself. The
homeowner's insurance you have is likely to protect you in the
event that a family member, friend or social visitor gets hurt
but it is not likely to include anyone who comes by who is in
any way connected to your home based business.
Different types of home based businesses require different
kinds of insurance. For example if you are in the business of
selling professional services such as running an accounting
business from home then it will be necessary for you to obtain
professional liability insurance. On the other hand, product
liability insurance is essential if you make, distribute and/or
sell any type of products. If one of your products causes injury
to someone who threatens to sue, you will be glad that you
invested in this type of insurance. If you plan to hire people
to help you run your business then worker's compensation
insurance coverage is a must.
If your business will take you away from home on occasion then
make sure that your car insurance adequately covers you for any
injuries you might sustain in relation to your business
dealings. While you are at it find out how far your general
liability coverage reaches. This type of coverage will come in
handy if you accidentally cause injury to someone or damage
someone's propety while you are away from home conducting
business. In some cases you may need to purchase a special
policy or a rider to protect you. Some insurance companies
offer these types of riders for a cost of $200 or less.
Ed Watkins - Resides in beautiful Las Vegas,
Nevada. To read more about Home Based Business Insurance visit
Eddie's website blog at: http://www.teamsuccesspros.com
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