PROTECT YOUR BUSINESS

A dream turned into reality needs protecting so it won't be turned back into "just a dream." Entrepreneurs do get sued every day. Research different types of insurance and choose the coverage best suited to protect your business.

HOMEOWNER'S INSURANCE

With a home-based business, you have homeowner's insurance, so what goes on within your home is covered - Right? - WRONG!

Homeowners Insurance FAQ answers your questions about both home and renters insurance. Most of what is covered in a homeowner's policy does not cover business losses. If your home is burglarized and supplies, inventory and valuable business records are taken, a homeowner's policy would provide very limited coverage.

You must be concerned about protecting your business property just as you are your home. Protection has to be a serious concern as part of your business plan.

In a machinery-driven business, the losses can be high in case of a fire or flooding. In a business of today and of the future, equipment such as computer systems with all of the peripheral components must be considered.

LIABILITY INSURANCE

A customer comes to your "home" to pick up a special order from your business. The customer trips on a rug in your studio, falls, breaks a leg and expects reimbursement of medical bills. When the intent to purchase a product from your business is established, the insurance company holding your homeowner's policy might not be willing to pay the claim.

Liability insurance should be considered as a part of your insurance package. When you have employees, liability insurance will protect you from any loss not covered by worker's compensation. If your employees drive as part of their responsibilities, ask about commercial auto insurance.

BUSINESS INTERRUPTION INSURANCE

Another type of coverage to consider is business interruption insurance. An example of usage of this type of insurance would be if a fire that destroys all of your business. When you depend on your business income to live, any time lost from production can become a hardship. With this insurance, money would be available to cover the time and necessities it takes to rebuild the business. Learn more about Business-Interruption Insurance.

Even in a start-up business you must be concerned with insurance although initially the needs could be very straightforward. The cost of insurance will vary depending on the type of business and amount of coverage desired. If your budget is small, determine what losses could most impact the business (burglary, fire, liability) and cover the largest risk.

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