How to Protect a Home Based Small Business

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<p> 1. BASED BUSINESS If you run your small business from your home and a customer happens to trip, fall, and break a bone, whos going to pay the medical bills? The answer to that question depends on exactly where you operate your business and what you do, but consider covering the following: TYPES OF POLICIES The most inexpensive Home-based Business Insurance is an add-on or rider that expands a Homeowners or Renters Policy to cover the company. The cost of such a rider is minimalas little as $100 a year but it can provide as much as $2,500 in additional coverage. Such coverage may work, for example, for an accountant who works at home preparing customers' taxes and delivers the returns via email. An In-home Policy covers a broader spectrum of contingencies, including loss of critical documents or theft of funds being taken to the bank for deposit. An In-home Policy, issued by a home insurer or a specialty rm, usually is a plan against injury or theft covering a few employees. Premiums typically run from $250 to $500, and the plans can cover as much as $10,000 in losses. Most serious home-based business owners should consider picking up at least an in-home policy. Entrepreneurs who need more than $10,000 of coverage should invest in a Business Owner's Policy. This comprehensive policy is what brick-and-mortar retailers use. Situations usually covered by this type of plan include damage to or loss of business equipment and other assets, liability for customer injuries, loss of critical records, malpractice or professional liability claims, and loss of income or a business interruption in the case of a power outage or a natural disaster. A premium as low as $500 could insure up to $2 million. SOURCES http://www.bankrate.com/brm/news/biz/soho/20000804.asp http://rlicorp.com/Products/IBP/buy.asp http://www.entrepreneur.com/article/220125 http://www.thehartford.com/aarp/home-insurance/home-based-business-insurance http://www.rmiia.org/business/home_business_insurance.asp http://www.411sbfacts.com/sbpoll-about.php?POLLID=0069 ABOUT SOHOs When a re damages your entire inventory, think your Homeowners or Renters Policy will help? And whos going to pay for the broken windshield on this luxury vehicle? If the delivery person is dropping o a package related your business and trips on your porch, injuring himself, your Homeowners or Renters Policy wont help. FOR MOST FULL-FLEDGED BUSINESSES OPERATING OUT OF HOMES, YOUR HOMEOWNERS OR RENTERS POLICY THE ITEMS MENTIONED ABOVE. WILL NOT COVER Small Oce/Home Oce COVERAGE IS NOT COST-PROHIBITIVE FOR MOST ENTREPRENEURS. POLICY RIDER TO A HOMEOWNERS OR RENTERS IN-HOME BUSINESS Policy BUSINESS OWNERS Policy MILLION % of them operate a business from their homes Number of home businesses that are not properly insured IS YOUR HOME- COVERED? ARE YOU COVERED? DONT BET ON IT WHAT DO YOU NEED TO COVER? 60 18 There are more than 300 million people living in the U.S YOUR EQUIPMENT. ANY WORKERS YOU EMPLOY ON THE PREMISES. ANY PRODUCTS YOURE SELLING. YOUR RISK OF OFF-SITE LIABILITY. POTENTIAL BUSINESS INTERRUPTION. DATA.VALUABLE DOCUMENTS OR CASH THAT YOU STORE. THE GOOD NEWS IS square feet. Median size of home-based office 250 </p>