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How can I
insure my home-based business?
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Let's
face it. Launching and running a business takes capital,
motivation and yes, even physical stamina to handle the stress
and demands of a new or growing venture. And it's risky. In
fact, one out of every five businesses fails within the first
five years of opening.
Handling inventory, scheduling time, purchasing supplies,
handling payroll -- there are a myriad of procedures every home
or small business entrepreneur needs to know, but one of the
most critical and often neglected is buying proper insurance
coverage.
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Video:
Most Home-Based Businesses are Not Properly
Insured
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TAKING
A BUSINESS INVENTORY
What would happen if a fire or other disaster destroyed your
property, making it impossible for you to get back to business
right away? Would you remember what property had been destroyed?
One way is by taking a complete inventory of all your personal
business property, determining its value, and deciding what's
worth insuring. Having an up-to-date business inventory will
help you get your insurance claim settled faster, verify losses
for your business' income tax return and help you purchase the
correct amount of insurance.
Start by making a list of personal business property, describing
each item and noting where you bought it and its make and model.
Clip to your list any sales receipts, purchase contracts, and
appraisals you have.
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WHAT'S
THE RIGHT COVERAGE FOR YOU?
Then there's the question of what types of coverages you'll
need. Aside from personal business property, there is liability
insurance, business income, insurance for the building, boiler
and machinery, human failure, employee protection and management
protection, among others. The type of coverage you need depends
on a number of factors including what kind of business you
operate.
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I.I.I.
BUSINESS OWNERS INSURANCE CHECKLIST
Click on the file name below to download the "I.I.I.
Business Owners Insurance Checklist":
Download/View File: BUSINESS
OWNERS INSURANCE CHECKLIST (PDF File) (87 K) |
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HOW
TO KEEP COSTS DOWN
Start your search for a policy with trade associations or
business groups. In many cases, these organizations are able to
provide reduced insurance rates based on the volume of business
they can offer the insurance company. They've also negotiated
coverage specific to your type of business, which can save you
significant time in determining what you should cover. Also make
sure that you are working with an agent that understands your
type of business.
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ADDITIONAL
RESOURCES
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