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HOW SHOULD YOU INSURE YOUR HOME-BASED BUSINESS?
Insuring your home-based business and getting the coverage you need is an important step that needs to be taken. Each business is a little different and will need specific type of coverage, with possible added clauses to cover everything you do. Before starting to search for an agent you must ask yourself some basic questions.
- What type of business do you operate?
- Are people going to be coming to your house?
- Do you use your own personal vehicles for work purposes?
- Do you have any employees?
- Do you collect and store customer or employee data?
- How much business property do you have?
These types of questions should be answered, and written down, so it is ready when talking to an agent about your detailed needs. If you are getting an online policy, be sure to read through it thoroughly and understand what they are offering you before signing. If you are going through an agent, go over the policy and ask questions.
An informed decision can be made after you have taken the time to ask yourself the questions above. Since you wrote them down it will be easy to answer them and add or remove parts of the policy. There are three basics sections that you will need to go through. Make sure to compare numerous different companies to get the best value for your money. An online site that has a home insurance compare section will narrow the search for you.
- Property and Liability-This is the section of the policy that is the broadest and will have numerous sections that can be added or adjusted. If you plan on having customers, or employees, coming to your house on a business project then your basic home insurance will not cover you. You will need to add an endorsement or a stand-alone business option. Liability insurance will also need to be adjusted if you store personal information or work on private property that is not your own.
- Vehicle Insurance-If you are using your vehicle for business purposes you will need insurance that covers it. Make sure to include other drives if you will be assigning cars to other people to drive. If you have a fleet of cars, ask about a basic policy that will cover all drivers.
- Workers Compensation- If you have employees you will need to get a policy that covers then in case of an accident. Remember, though, if you have people that consider themselves independent contractors then they are the one liable for coverage. Basically, if you do not have them on a payroll system that requires taxes to be taken out, they must carry their own insurance.
This is just a simple breakdown of how to get insurance for your home-based business. Each section has specific areas that cover different things that may apply to your situation. There will also be some that you will not need. That is why it is important to ask questions and read the policy. No matter which option you choose to go with, make sure that the insurance policy covers every aspect of you and your business.