Sorting Out Your Finance and Money Situation
Don't Overlook These Needed Forms of Insurance When Running Your Own Business
Terry Porter
When you run your own business or are self-employed, even if you work from home, you need to carefully consider the types of insurance you have that protect your business, your work itself, and even your equipment and supplies. It's easy to think you don't need many forms of insurance when you're self-employed, and especially if you have a home office, but different insurance coverage options can protect you in case of a number of emergencies. Note a few of those types of policies and then discuss these with an insurance agent as needed.
Property insurance
You may think that your homeowner's or auto insurance would cover any loss or damage to your business equipment if you should suffer a fire, flood, or other such disaster at home, or if these things were to get stolen from your car. This isn't always the case, as these policies may actually outright exclude equipment used for business purposes. There may also be limits and deductibles on these insurance policies that would mean not being reimbursed for their full value. Talk to an agent about property insurance needed to cover tools, a trailer you use for equipment you take to a job site, computer equipment, products you may be delivering in a car or van, and other such items you use for your business.
Additional property insurance can also be needed to cover liability if someone were to be injured on your property while visiting your home for business reasons, or if you were to be in a car accident while driving your vehicle for business purposes. Again, your homeowner's or auto insurance may have very limited coverage for these incidents, so ensure that you have property insurance that covers all accidents or damages caused during the course of business.
Business interruption insurance
When you're self-employed or have a small business with just a few employees, you may not be able to so easily suffer any downtime or interruption of that business. A larger business may be able to absorb the loss if a production facility suffers a fire, workforce strike, and so on, but if your equipment is stolen, your car is damaged, or you lose even a few days of work, much less several weeks or more, this can be financially devastating. Business interruption insurance can compensate you for at least a part of what you would have expected to earn in that time, so you can stay afloat financially until business picks up again.
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