Are you earning your living by being in business for yourself? Does your home Internet business rely solely on your being able to perform your job every day?
If so, you are essentially running a home business without the benefits that go along with working for someone other than yourself.
In these instances, it is essential that your home Internet business has the proper insurance coverage.
Unfortunately, if you are like the majority of home-based business owners, you do not have proper coverage to handle emergency situations, including accidents, natural disasters, and illnesses.
This puts you and your livelihood at risk.
Types of Coverage
According to insurance companies, there are three categories of protection you need to consider when trying to protect your home-based business.
• The equipment you use: Do you know what your business property is worth? If you are a photographer, your camera alone could be worth over $5,000. However, the majority of home insurance policies will only cover up to $2,500 for this equipment.
• Liability: If you have people coming to your home for your services and they are injured, you can be held liable for their medical care. This works just like a traditional business. Having adequate liability insurance will ensure you can cover any costs that arise due to an injury.
• Business specific risks: Each type of home business has its own risk. To determine yours, discuss your home-based business with a licensed insurance agent.
Insurance Types for Home-Based Business Owners
Now that you know how important home-based business insurance is, you have to consider the different types that are available.
In some cases, you will have the option to add coverage on to your existing home policy.
Other options include purchasing an in-home business policy that many insurance companies now offer, or even a business owner’s package policy.
Importance of Health Insurance Coverage
As the following article looks at, in addition to liability insurance, you need to ensure that you have proper health care insurance to cover your own personal injury. This is especially important if you find yourself unable to work.
Some options to consider when choosing the right health insurance coverage include:
• Joining a group: In most cases you will have to have a connection to these groups, but as a business owner you can join your local chamber of commerce and likely take advantage of their program.
• Look for plans that are specifically for small businesses.
• Select the proper type of coverage. There are a number of options available that affect the flexibility and cost of the policies.
• Consider a government approved Health Savings Account. This allows you to set aside pre-taxed income to save for health care costs.
Understanding the importance of insurance for your home-based business is essential.
Talking with an insurance agent that specializes in home Internet businesses will help you find the right options for your needs.
Take this important step today to ensure a secure business tomorrow.
Photo credit: Image courtesy of renjith krishnan at FreeDigitalPhotos.net
About the Author: Kate Supino writes extensively about best business practices for SMB.