Is Your Home Business Properly Insured?

According to a survey conducted by the Independent Insurance Agents & Brokers of America, many owner/operators of home businesses are underinsured and don't even know it. An article on business insurance for home-based business in the Tucson, Arizona Daily Star points out that the survey results concluded that 58 percent of home-based businesses aren't properly insured for their property or liability risks. Of those who took part in the survey, 29 percent said they were too small to need insurance and 39 percent said they didn't think they needed business insurance because their Homeowner's policies covered them. Unfortunately, the last assumption is a dangerous misconception held by many home business owners because Homeowner's policies typically restrict or exclude coverage for property damage, injuries and liability exposure related to business pursuits.

Planning to protect yourself, your home and your family from financial hardship by examining your business insurance needs is one of the steps I recommend you take before you start a home business and is just smart money management. If your home business is up and running and you still haven't evaluated your business insurance needs, the time to do so would be right now - before it's too late.