Do you work from home full-time or part-time? Chances are your homeowner's insurance doesn't cover your home business, or at least not to the extent you need it to. For one thing, insuring just the physical assets of your business (computer, home-office furniture, fax machine, etc.) doesn't encompass every aspect of your business.
To figure out how much and what kind of coverage you need, consider possible accidents; hopefully, nothing untoward will befall your business or your home, but you should plan for any eventuality so you will not suffer financially if something comes to pass. If a fire were to destroy your home and office, consider where you would work until your home was rebuilt. You would probably need to rent a temporary office space somewhere. Does your current insurance policy cover this?
Do you retain any sort of client information, either on your computer or in files? If your computer was ravaged by a virus, or your files damaged in a fire, and you didn't have copies of all that information, your clients might hold you liable for the loss. If you have clients visit you in your home office, your homeowner's insurance might not cover their medical expenses should they trip and fall
down your stairs or some such.
Do you have any employees? Even part-time employees may affect the kind of home business insurance you need. As you can see, there are number of factors you need to take into consideration when insuring your home business.
Talking to your current homeowner's insurance agent can probably get you started in the right direction. You might not even need separate home business insurance. Depending on your business, you may be able to receive coverage for it simply by enhancing your current homeowner's insurance policy.
Tip: If you bundle your policies (i.e. car, homeowners, business), you may qualify for a discount. As more and more people pursue home-based businesses, insurance companies are starting to offer more comprehensive coverage at better rates. Make sure to talk to a number of insurance agents to find out who has the best rates, most options, and best coverage.
TC Thorn writes content for numerous web sites, including a number she owns such as http://www.homesecurityinformation.com where you can find more information on homeowner's insurance and home security.
Is Your Home-Business Insured?
Most people don't consider getting business insurance when they work out of their homes. For many home businesses, it may not be necessary. This article will help you decide if you need additional insurance coverage for your home business.
Insurance helps protect your business against losses from fire, illness, and injury. You should not operate without it. If you are running your business out of your home, your homeowners insurance will probably protect you against most accidental losses.
Check with your insurance carrier to make sure that your coverage includes business use of your home. If not, you should add the insurance you need to your existing policy. You may need to add additional coverage to include Product Liability. The purpose of Product liability insurance is to protect you in the event your product causes injury to the consumer. While you may or may not think this is necessary, you would be better safe than sorry if a consumer sued you because your product injured them.
Disability Insurance is a kind of health insurance that will protect you, should you become disabled and unable to work, provide for your family and meet your financial responsibilities.
Auto Insurance may be necessary if your personal car is used in your business. Most (if not all) states require that an individual must have auto insurance in order to operate a motor vehicle. Getting caught without it usually results in a traffic ticket and some pretty stiff fines.
Medical Payments Insurance is necessary if someone is
injured in your home whether or not it was your fault Most homeowners policies include this as a standard portion of the policy, but check with your agent just to be sure you are adequately covered.
Worker's Compensation Insurance will probably not be necessary if you are working out of your home, however, if you have employees it is a requirement in order to protect you, the businessperson, as well as the employee from losses due to accidents on the job.
Business Interruption Insurance is not something we want to consider, however, it is an extra protection you might wish to add to your policy. In effect, if your business is damaged by fire or circumstances beyond your control prevents you from operating your business and you must totally or partially suspend operations, this insurance will help protect you from total losses while you rebuild your business.
Keep all your insurance records and policies in a safe place. A bank safe deposit box or home safe is ideal.
Although we don't like to think about the unpleasant "what if's" in life, it is often better to be prepared than to face the unnecessary expense of loss. Insurance can help protect your home business if you take the time to evaluate your business insurance needs.
About the author:
Kim Haas is a WAHM and Founder of http://Womans-Net.com, a popular online networking community focusing on working from home and women in business and Owner of http://Article-Host.com. To learn more about Kim, visit http://kimberlyhaas.com Copyright 2005
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