By: Yara Zakharia, Esq.
Business property insurance:
Home-based business owners can buy business property insurance for as little as $200 a year to protect their property for $10,000. Such a policy includes general liability coverage. This type of business insurance covers, for a period of up to one year, expenses and lost earnings resulting from damage to the home, business equipment or inventory by fire, flood or other disaster.
Comprehensive general liability insurance:
This type of business insurance covers home business owners if a third-party suffers personal injury while on their property. It also covers the cost of the home-based business owners' legal defense in the event that they are sued.
Workers' compensation insurance:
Home business owners who have employees working out of the home business will most likely be required under state law to carry this type of business insurance for employees' employment-related injuries. Home-based business owners who do not carry workers' compensation will have to pay their employees' medical bills arising out of injuries sustained within the scope of employment.
Business owner's package policy (BOPs):
This business insurance package offers home business owners liability and property coverage at an affordable price. A BOP is ideal for a home-based business that manufactures products in an off-site location and conducts business in more than one location. With this business insurance, the home business owner's business equipment and property, expenses, liability, and lost income are covered.
Business interruption insurance:
This species of business insurance protects the home business owner against losses, such as lost income, caused by natural disasters and pays for ongoing operating costs regardless of the fact that the business stopped running.
Home-based business owners can rely on this business insurance to cover them financially when they are unable to work because of disability due to illness or injury.
The purpose of this business insurance is to protect the home business owner's family by ensuring that it is financially provided for in the event of his death.
Home-based business owners and service providers such as attorneys and physicians purchase this kind of business insurance to protect themselves against damage stemming from substandard work, omissions and errors.
In view of the fact that unforeseen events do occur and that the absence of coverage could spell disaster, home-based business owners should invest in some form of business insurance. After all, the survival and continual success of their enterprise could very well depend on having the right business insurance coverage.