What You Need To Know About Insuring Your Home Business

The Independent Insurance Agents & Brokers of America conducted a recent survey and this revealed that more than half, 58% in fact, of home based business owners have not insured their business.

The truth, however, is that no matter the size if your business; this doesn’t matter, you’re not impervious to lawsuit. According to the executive director of Insurance Information Network of California (IINC), Candysse Miller, most home based business owners believe that they’re too small to need any kind of business insurance policy.

Approximately 40% percent of those who were surveyed believed their business should have a homeowner policy and unfortunately, 10 percent of those who have no business insurance policy encounter lone form of loss or another in their business venture.

The IINC suggests the following options to a home business owner such as you are:

• For as low as $14 a year, business-owners can increase their standard homeowner's policy limits. This can be a good choice for people who don't have exposure to liability, who do not store business inventory and who do not rely solely on their income for survival and have inexpensive business equipment.

• A full home office policy is the next step up. Home office policies cover business liability and replacement of lost income, as well as homeowners coverages such as fire, theft and personal liability.

• You can also buy several individual business insurance policies to provide the various coverages you need, such as business property, general liability and business income insurance.

• You may also need special policies for business use of your car, health insurance, injured workers compensation. An umbrella policy may also be necessary to offer extra liability insurance that pays or a loss when the limits of your underlying policy are reached.

To get the best deal, look around and call up at least three insurance agents. Compare their offers, and don’t be shy about asking for a discount.

It always pays to have a strategy in place when all goes not quite as you’ve planned. Remember your home based business is still a business, you better treat it as one.