Can I Insure my Home Business?

By Compuquotes Team on March 27th, 2008
Business Insurance

One of the great dangers in becoming an entrepreneur is that the vast majority of home businesses fail within the first couple of years. If you have avoided becoming a statistic, then you should be proud of yourself, but you should also ask yourself if you are doing enough to protect your home business. Not every business is adequately insured and protected, and all of the great business practices in the world will not help you if your home business is involved in a fire or is otherwise damaged.

You can protect your home business from hazards like natural disasters as well as from litigation with the proper business insurance. People think that because their business is run out of their home, it is not eligible for business insurance. This is not true. While insurance practices may get complicated for a business run out of the home, it is also common enough that your home business can certainly be insured, and many insurance companies are used to dealing with situations like yours.

To insure your home business, and for tax purposes as well, you will want to make sure that your home business is separate from the rest of your home, and that the tools and equipment used for your home business are not used for any other purpose. If your business computer does double duty as the family PC, then insuring it can get a little confusing.

Once you have separated your business equipment from your home equipment, you need to take an inventory of every thing that you own for your business to determine the value. Keep this inventory along with as many receipts or appraisals as possible in a safe place, preferably away from your actual home (if your home burns down and your business is lost, your list will be, too). This list will help you determine how much you need to insure your property.

You will also want to talk to an insurance agent to determine how to insure the rest of your business. You may need liability insurance or other coverage, all of which can be explained to you by the insurance agent, who will help you to determine which products will best suit your needs as a home business. They can give you advice on the coverage that you need, provide you with the details on what insurance you are required to have, and help you find out what other insurance aspects may be useful.

Owning a home business takes a lot of work and dedication, and the failure rate of home businesses is very high. If you want your home business to succeed, then you have to put in long hours and do whatever it takes. Do not let a chance accident wipe you out when a simple insurance plan could help you to prevent it. Your home business can be protected, and all for just a little bit of money every month. Insuring your home business is worth the investment.

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