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Does Your Home Business Need Insurance?

Brandi Greygor is always nervous when he drives to his home. Greygor, owner of Sassy Mama Boutique, has often sold women and children’s clothing and accessories for $ 10,000 at home parties and exhibitions. She prepared the merchandise and sat unattended all night before the incident happened.

Greygor was not so worried about the dismal sales. She did not have business insurance and can be sued for medical expenses if a child is injured using a toy or if a shopper is hurt. And if something goes wrong – if the item is damaged, lost or stolen – Sassy Mama will face a huge loss.

“If you get $ 10,000 to $ 20,000 to $ 30,000 in wholesale, you can lose it,” says Greygor at Kyy Union. Her first-year home business was not covered for more than nine months. Her worries about her dangers allowed her to buy insurance benefits.

If you are doing business at home, it is a good idea to take out insurance. The sales amount is not important. The amount of loss you can face is important if something goes wrong. So how can an entrepreneur protect a home based business? Protect your business instantly. Depending on the complexity and type of your business, you can choose one or more of the three basic types of insurance.

1. Riders who take out landlord or tenant insurance

The cheapest home business insurance is an add-on or rider who can extend the coverage of the homeowner or tenant. Loretta Worters, vice president of the New York State Insurance Information Association, says industry groups and information exchange agency Loretta Worters explain that these riders cost about $ 100 a year at minimum, but generally offer about $ 2,500 in additional insurance.

This type of insurance may be suitable for businesses that do not have valuable equipment or do not have a lot of business visitors, and may not suffer large losses if they can not operate for a short time due to a fire or other disaster. For example, if an accountant working at home prepares a customer’s tax and provides a return via e-mail, Hanley says, these rewards can be applied. However, you can leave home-based employers for costs such as large medical costs for wounded UPS employees.

2. Home Business Policy

Domestic policies address a wide range of accidental events, including the loss of important documents or the theft of funds sent to the bank for deposits. In-home insurance issued by a home or professional company typically employs three employees in a plan for injury or theft, Worters says. Rates generally range from $ 250 to $ 500, and plans can cover losses up to $ 10,000.

The most serious homeowners are advised to consider at least their home policies, says Rebekah Marshall, multi-product insurance manager at the National Federation of Independent Business. “It’s about business equipment and responsibilities,” she says. “It is important that people come in and out.”

If you are interested in asylum policy, you should find a policy in your state that covers your business type. Each state establishes its own rules for insurance coverage that can be provided to home businesses. In general, given the low insurance premiums, buyers in home policies often run low sales or part-time sales.

3. Operator policy

Entrepreneurs who need insurance for more than $ 10,000 must pay their employer’s premiums. Marshall says this comprehensive policy is used by brick and mortar retailers like any other company.

Generally, situations covered by this type of plan include loss or damage to business equipment and other assets, liability for customer injuries, loss of fatal records, claims for medical or professional liability, interruption in revenue or business interruption in case of loss of power Blackout or natural disaster. These policies are also protected when driving private vehicles for business purposes. This insurance prevents more losses than a landlord’s policy-bearer or home-based business policy. Video creator Logan Hale, a second-generation Your Little Film in Los Angeles, paid $ 500 for a $ 2 million business owner policy to protect $ 20,000 worth of equipment from breakdown, theft or damage. His plans also deal with loss or damage to home movies from customers.

Damage to property at home or in public, or property damage. Rodney Pyle, a Los Angeles-based farm insurance broker, said he had searched around for a while before finding a special policy for a video cameraman. “As we go into people’s houses and begin filming, we are really saying,” 2011 is coming. ” “It’s much safer now that you know your family is not in danger of being sued.” Related: How to make headquarters on a budget As your company grows.

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