| Many people who operate home-based businesses | | | | in conducting your business. In addition, don't |
| assume that their homeowners insurance also | | | | forget about your office furniture such as your |
| covers their business. This is certainly a logical | | | | desk, chair, and any tables that you might use for |
| assumption if you are operating a business out of | | | | operating your business. |
| your home, but the reality is that homeowners | | | | If you have an insurance agent who handles your |
| insurance usually only covers up to about $2,500 | | | | other policies, you might want to talk to that |
| for business related losses. Some homeowners | | | | person about home office coverage. Even if that |
| policies will not cover any business related | | | | particular company doesn't offer those types of |
| expenses, so you might want to check your | | | | policies, your agent can probably refer you to a |
| current policy to see if you are protected at all. | | | | reputable company that does offer that type of |
| If you think that you do not need home office | | | | protection. |
| insurance, think again. You need this type of | | | | You should keep in mind that even if a particular |
| insurance coverage to protect your computers, | | | | company is recommended to you, you need to |
| software systems, office supplies, and client | | | | make an effort to obtain at least two or three |
| information. Even if you are not worried about the | | | | different quotes for policies. You don't want to |
| potential loss of a computer, printer, fax machine, | | | | limit yourself to only talking to one company |
| or phone, you should seriously think about the | | | | about insurance coverage. Sometimes it pays to |
| data you have stored somewhere in your home | | | | shop around; just make sure that you do not |
| (or on your computer) regarding your clients. | | | | compromise on coverage in order to obtain a |
| If confidential client information were to be | | | | cheaper rate. |
| compromised, you could be liable if one of those | | | | If your home-based business provides any |
| clients were to be harmed in any way because of | | | | services to customers that requires them to |
| the actions of the person who stole the | | | | come to your home for appointments or |
| information. Lawsuits can be very messy and | | | | consultations, you will need to make sure that |
| expensive, so it is best to protect yourself from | | | | liability coverage is included in your policy. This |
| the beginning so that you do not have this type | | | | gives you some added protection in case |
| of worry hanging over your head. Whether the | | | | someone happens to trip and fall while on your |
| information is in print, stored on your computer, | | | | property to conduct business. |
| or on a flash drive, you are still responsible for | | | | The extent of the coverage that you will be able |
| keeping that information secure. | | | | to buy will depend on the state you live in. If you |
| As you consider the items that you need home | | | | want more coverage than a company is offering, |
| office insurance coverage for, take a careful | | | | ask them if your coverage amounts can be |
| inventory of your home office area. Every | | | | increased. In some cases, a rider can be added |
| computer, printer, desk, filing cabinet, fax machine, | | | | onto a policy that will offer you some additional |
| and copier should be accounted for; but you | | | | type of protection for certain events. |
| should also include the smaller items that you use | | | | |