Home-Based Business Owners: Guide to Protection

Millions of Americans are enjoying the benefits of Home-based Businesses. Home-based businesses are very lucrative but, what happens when you are hit with a lawsuit or have damage to your equipment? Home owners insurance does not fully cover your home business. It is very wise to get Home-based Business Insurance or add an addendum to your existing policy to guarantee coverage for you home and business.

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Start-up or small business owners should add an addendum to their home or renters insurance policy for protection. This is perfect for the home-based businesses with inexpensive merchandise and equipment. There are addendum policies for less than $10 a month offering up to $2,500 worth of additional personal property coverage for your business equipment. While this type of add on does not help in the event of a lawsuit it is good to have when starting your business to protect your equipment.

If your business has the potential to face lawsuits due to injury, property damage or poor work ethic then you require a Home Business Policy. This policy was created for home-based companies with assets totaling between $2,500 and $10,000. For about $20 to $30 a month you are eligible for property coverage as well as liability for your business.

They also offer Commercial Insurance Policies for large home businesses that have acquired large assets and require an immense quantity of coverage. These types of policies offer a variety of liability coverage such as provision insurance, Malpractice and Negligence. For about $50 to $100 a month you are eligible for 1 Million dollars in coverage. This is the home-base business full coverage plan.

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There are 3 types of coverage plans for your homes business;
– Liability Coverage (from $300,000 to 1 Million) which protects you from losses due to liability claims.
– Property Coverage ($10,000) which protects you from loss or damage of your business assets. (I.e. Computers, Equipment, Merchandise, Materials, Inventory Etc.)
– Lost Income Coverage which is sent in place in the event of a cease of business operations caused by damages at a covered event. If your business is forced to stop operation you are able to pay employees and bills for up to one year.

It is very imperative that you know and understand your insurance policies. In business, insurance is your fall person, regardless of what happens if you are properly insured you will not be personally affected.

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