Home Business Insurance
When starting a home
business, or opening a small
office, insurance is likely not the top thing that comes
to your mind. However, this is something that you can not
just forget. When the crazy accidents happen, having good
insurance coverage could be the difference between the failure
or the success of your new business.. You may not need all
types of insurance listed below, but take a few minutes
to consider your insurance needs now. This can save you
time, frustration, and money in the years to come.
Life Insurance
This will make sure that your loved ones and family have
the money it needs should you die unexpectedly. Some small
business lenders require that you have life insurance before
they'll even give you a loan.
This ensures that the loan will be repaid if you meet with
an untimely end.
Disability Insurance
This type of insurance guarantees you some income should
you suddenly become unable to work because of injury or
illness. It is important to note that there are two types
of disability, long term and short term. You should look
into both. Having this insurance could offer extra peace
of mind and could also be the difference between success
and failure in your business. This type of insurance is
vital if you are in the construction
business.
Health Insurance
This must be your top priority as far as insurance goes.
Make sure that you get either a family
individual plan or if you will have employees a group plan.
Make sure you shop providers well, there can be a big price
difference. If you have just left anther employer to start
your own business, you may be eligible for COBRA, which
will provide temporary interim coverage. This will keep
you covered while you search for the best health insurance
policy.
Property Insurance for Businesses
This protects your company against the loss of inventory
or equipment.
If your business equipment or inventory is damaged in a
flood, fire, or other disaster, this type of insurance will
allow you to recoup your losses.
Complete general liability insurance
If you plan on having clients or customers visit your
home or small office, you will need this insurance. Whether
you plan to hold meetings, allow customers to pick up
merchandise, or have members of the public enter your
home for any other reason, this insurance will protect
you if someone is injured while on your property. This
insurance will typically pay for your legal defense should
you face a lawsuit as the result of a fall or other damage
that occurs on your property.
Business Interruption Insurance
Business Interruption Insurance helps your business recover
from natural disasters. I have personally never used this
one, but if you are conservative, you should consider
it. It will help cover you for income lost during the
disaster, and will pay for operating expenses that continue
to accrue, even though your business isn't up and running.
Workers' Compensation Insurance
This is mandatory if you have employees. Without workers'
compensation, you will be responsible for any medical
expenses arising from injuries employees sustain while
working for you. This is an insurance that you MUST have
if you have any type of employees no matter how large
or small your business is.
I hope that this was a bit helpful to you in understanding
the insurances you may need to start your home business
or small business.
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