Does A Home Business Need Insurance?
Home businesses are growing rapidly thanks to the Internet and World Wide Wed. Countless consultants, work at home moms, independent contractors now operate their businesses from home. If you’re one of these professionals doing business from home, there are some critical insurance issues you need to be aware of.
Chances are, you have a homeowners policy to cover losses related to your home and the contents within your home. But when it comes to your home business, homeowners policies are limited as to what they’ll cover. In fact, most homeowners policies cover a maximum of $2,500 in business related losses at home.
Commercial Insurance For Natural Disasters
Losses attributable to natural disasters are not commonly included in commercial insurance coverage (or in any other insurance coverage, including homeowners insurance). Yet the location of a business may require such coverage be obtained to protect the life of the business. Businesses located along the southeast coastline of the US, for instance, should have “windstorm,” that is, “hurricane” insurance, especially considering the increasing frequency since 2004 of severe storms hitting these areas.
California businesses must seriously consider the advisability of obtaining earthquake insurance, even though the probability of a catastrophic earthquake causing total devastation of a business is less than that of a hurricane hitting the southeastern US coastline. Flood insurance, back-stopped by the Federal government, really falls into a different category because it is more available and affordable than insurance for the other two kinds of natural disasters mentioned above.
Business Insurance For Startups
Introduction
Your business is ready to launch, so what insurance do you buy? Money is tight and it is your hide on the line. This article focuses on the insurance choices faced by entrepreneurs working to get a new business running. Three main categories to consider: 1. Required Insurance, 2. Critical Risks, 3. Economic Risks.
Required Insurance