When it comes to a home-based business, don't forget about insurance.

                                

Many people make the mistake of believing that their homeowner's insurance coverage

will cover them if they start a home-based business.

This isn't always the case, however.

Before you start a home-based business, make sure you understand

all of the ins and outs of insurance so you are not left in a poor situation

if something goes wrong, such as your computer being stolen

or your home office catching fire.

The first step to avoiding unpleasant surprises in the future is to speak

with your insurance broker and inform him or her of your plans to launch

a home-based business.

Adding riders for your business to your pre-existing homeowner's policy

to cover you for any regular risks that you are incurring

in beginning, a new business is usually not a pricey affair.

Because not everyone's insurance needs for their business are the same,

find out if you need to get several insurance plans for different types of business coverage.

Examine all of your company equipment, as well as furniture such as your desk and chairs,

to determine how much it would cost to replace these goods in the event of a break-in,

a fire, a flood, or any other form of disaster. Include everything on your list,

including your computer's software and your mouse and mouse pad.

When insuring all of your belongings, choose the largest deductible available

and make sure that the insurance covers the full replacement cost of all goods,

not just the depreciated value.

Customers or clients that come to your home will require liability insurance.

Even the mailman and UPS delivery people fall into this category.

Accidents do happen, such as someone tripping on ice in your driveway

during the winter months, so be prepared by purchasing insurance.

Your homeowner's insurance will likely cover you if a family member,

Friend, or social visitor is injured, but it is unlikely to cover anyone

who comes by who is connected to your home-based business in any way.

Different types of insurance are required for different sorts of home-based enterprises.

If you're in the business of offering professional services, such as running a home-based accounting firm, you'll need professional liability insurance.

Product liability insurance, on the other hand, is required if you manufacture,

distribute, and/or sell any form of a product. You'll be glad you bought this insurance

if one of your items causes an injury to someone who threatens to sue you. Worker's compensation insurance is required if you want to recruit workers

to help you manage your business.

If your job requires you to go away from home on occasion,

be sure your automobile insurance covers you for any injuries you may receive

as a result of your business activities.

While you're at it, find out how far your general liability coverage extends.

This form of coverage will come in handy if you inadvertently injure someone

or damage someone's property while conducting business away from home.

To be protected, you may need to obtain a separate policy or a rider.

These types of riders are available from certain insurance carriers for as little as $200.