Do You Have Enough Insurance for Your Home Business?

by Kori Rodley Irons | More from this Blogger

Health insurance, Life insurance, Home insurance--do you really need insurance for your home business too? Well, like so many things, it all depends on the type of home business you are operating--

First, let's talk about your home owner's or renter's insurance--it's a good idea to look over your policy and talk to your insurance agent to make sure that your business operations are covered. If you are just operating a little home office and not keeping a great deal of product in your home, you may be alright and everything would be covered by your existing policy. However, if you are running a day care or carrying a significant amount or value of products, you might need to adjust your insurance policy to make sure things are, in fact covered.

Businesses where you travel to another's home or business--such as landscape maintenance or janitorial services--may also require that you get insurance specifically suited to those types of businesses. You'll want to make sure that you are covered in case of damage or loss and many clients will want to know if you are covered by your own insurance.

As for other types of insurance, if you are running your own business and don't have health insurance through a spouse or other more traditional job--you may want to see your insurance agent about getting health and disability insurance. Take into account how your family budget might be impacted if you were to become ill or injured and not be able to operate your business. Chances are, you are the sole proprietor and only employee so if you are not working, income is probably not coming in. There are individual insurance policies and plans that are geared toward the small business owner.

It is a good idea to do an "insurance check-up" periodically for both your family and your business needs. Don't assume that everything will just stay the same. As your business changes, or the way you use your home for business purposes changes (or as your family changes)--your insurance needs will likely change and you'll need to make adjustments to your coverage.

See Also: Are You Building Your Home Business on Rocks, or Sand? and Should You Get a Financial Planner?

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