Home-Based Business Owners, You Need Insurance Coverage
From
HometownQuotes
When you start a home-based business, buying insurance
may not be your first priority, but you cannot afford to
ignore it either. When the unexpected happens -- and it will
-- having insurance coverage may mean the difference between
the success and failure of your home-based business.
You may not require all
types of insurance listed here, but taking some time now
to consider your insurance needs can save you money and
headaches in the future. Ultimately, after reading this
article, the best way to determine your complete needs is to
consult with your insurance agent. Explain to them the
details of your home-based business and he or she should be
able to determine the best insurance coverage for you (and
any employees).
Health Insurance
Health insurance should be the first consideration for
yourself and any employees you may have. If you have just
left your current job to start your own business, you may be
eligible for COBRA, which will provide temporary interim
coverage. This will keep you covered while you search for
the best health insurance policy.
Disability Insurance
Disability insurance will guarantee that you have some
income should you suddenly become unable to work because of
injury or illness. Having this extra peace of mind is almost
always well worth the extra money you pay.
Life Insurance
Life insurance will help ensure that your family has the
money it needs should you meet with an untimely death. Some
lenders require that you have life insurance before they'll
issue a loan; this guarantees that the loan will be repaid
if you meet with an untimely end.
Business Property Insurance
Business property insurance helps protect you against
loss of inventory or equipment. If your business equipment
or inventory is damaged in a flood, fire, or other disaster,
this type of insurance will allow you to recoup your losses.
General Liability Insurance
Comprehensive general liability insurance is necessary
for your home-based business if you plan on having clients
or customers visit your home. Whether you plan to hold
meetings, allow customers to pick up merchandise, or have
members of the public enter your home for any other reason,
this insurance will protect you if someone is injured while
on your property. This insurance will typically pay for your
legal defense should you face a lawsuit as the result of a
fall or other damage that occurs on your property.
Business Interruption Insurance
Business interruption insurance will help your business
recover from natural disasters. It will cover you for income
lost during the disaster, and will pay for operating
expenses that continue to accrue, even though your business
isn't up and running.
Workers’ Compensation Insurance
Workers' compensation insurance is an absolute necessity
if you plan on having employees working out of your home.
Without workers' comp, you'll be responsible for any medical
expenses arising from injuries employees sustain while
working for you. Many home-based business owners mistakenly
believe that this type of insurance is only required by
businesses that have a retail or separate location, but
that's not the case. Another mistake is assuming that only
‘dangerous’ employers (such as construction or movers) need
this type of insurance. But what if your employee slips on
the stairs or their chair breaks? While those are both
unlikely, they are possible and the less risky your
business, the cheaper the insurance will be.
These insurance plans can help ensure that you are
prepared to face any eventuality that might occur while you
are running your own business. Disasters, accidents, and
crises can strike at any time. By preparing now, you may be
saving you and your company significant financial loss,
wasted time, and difficulty. 
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