BASED BUSINESS

If you run your small business from your home and a customer happens to trip, fall, and break a bone, who’s going to pay the medical bills?

The answer to that question depends on exactly where you operateyour business and what you do, but consider covering the following:

TYPES OF POLICIES

The most inexpensive Home-basedBusiness Insurance is an add-on or rider that expands a Homeowner’s or Renter’s Policy to cover the company.

The cost of such a rider isminimal—as little as $100 a year —but it can provide as much as $2,500 in additional coverage.

Such coverage may work, forexample, for an accountant who works at home preparing customers' taxes and delivers the returns via email.

An In-home Policy covers a broaderspectrum 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 firm, 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. Mostserious home-based business owners should consider picking up atleast 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 orprofessional 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 $500could insure up to $2 million.

SOURCEShttp://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-insurancehttp://www.rmiia.org/business/home_business_insurance.asp

• http://www.411sbfacts.com/sbpoll-about.php?POLLID=0069

ABOUT SOHOs

When a fire damages your entire inventory, think your Homeowner’s or Renter’s Policy will help?

And who’s going to pay for the broken windshield on this luxury vehicle?

If the delivery person is dropping off a package related your business and trips on your porch, injuring himself, your Homeowner’s or Renter’s Policy won’t help.

FOR MOST FULL-FLEDGED BUSINESSES OPERATING OUT OF HOMES,YOUR HOMEOWNER’S OR RENTER’S POLICY

THE ITEMS MENTIONED ABOVE.WILL NOT COVER

Small Office/Home OfficeCOVERAGE IS NOT COST-PROHIBITIVE FOR MOSTENTREPRENEURS.

POLICY

RIDER TO A

HOMEOWNER’S OR RENTER’SIN-HOME BUSINESS

PolicyBUSINESS OWNER’S

Policy

MILLION

%

of them operate a businessfrom their homes

Number of home businessesthat are not properly insured

IS YOUR HOME-

COVERED?ARE YOU COVERED? DON’T BET ON IT

WHAT DO YOU NEED TO COVER?

6018There are more than 300 millionpeople living in the U.S

YOUREQUIPMENT.

ANY WORKERSYOU EMPLOY ON

THE PREMISES.

ANY PRODUCTSYOU’RE SELLING.

YOUR RISK OFOFF-SITE LIABILITY.

POTENTIALBUSINESS

INTERRUPTION.

DATA.VALUABLEDOCUMENTS

OR CASH THATYOU STORE.

THE GOOD NEWS IS

square feet.

Median sizeof home-based office

250