Use Business Experts to Your Advantage 203
Your Home Insurance Policy One potential problem with running a business from your home can be the insurance coverage on your home. Depending upon your policy, you may not be covered for damage to the structure due to accidents caused by the business. For example, if the home business is cookies and you purchase a large industrial stove, damages caused by the stove (fire, floor weakness, etc.) may not be covered by your home insurance policy. Another example is if clients routinely come to your home to conduct their business. Your home insurance policy may not cover injuries caused by a client, or to a client, if those injuries are in conjunction with doing business. Two ways to determine if your policy will protect you and your home business is to contact your insurance agent and to read your policy. You may need to add a rider to your home policy to protect you and those who enter your business. While this is yet another cost to doing business, the insurance cost is probably less than what a lawsuit might cost you later.
Health Care Insurance Chances are that health care is the type of insurance you will use the most. If you are ill and unable to afford to get health care, you may be unable to continue with your business. This is especially true if you have employees. The cost of this type of insurance for small business owners is very high. To help you solve this problem, check with your professional or trade association. If you are not a member, consider joining one, as these groups may have a way you can pool your dollars with others to purchase health-care insurance for you and your family.
QUICK Tip Group Medical Insurance: Group insurance coverage has an excellent feature— it is usually issued without a medical examination or need for you to submit other medical evidence that could be used to exclude you.