How to Protect a Home-Based Business With Business Insurance
You run a small home-based business and you are happy with
the revenue which you earn. Unfortunately, all this can go away in just a few
seconds due to a natural disaster or a claim from a client. That is why you
require protection. The best way to get it is to buy business insurance. Use
some practical tips on how to shield your venture in the most effective way.
Cover all of your business assets.
The equipment and materials which you use for commercial
purposes are not covered by your home insurance. You need to protect them with
business insurance. Prepare a list of all assets which you use from your
computer to the furniture. It is best if you get a comprehensive policy which
covers your assets in case of a wide range of perils. If you have a limited budget
in the beginning, however, you can protect them against the most common perils
like theft and fire and then upgrade your cover.
Protect your revenue.
If your equipment gets damaged due to a peril, you will get
compensated for its loss. However, you will still not be able to work and earn
revenue for a certain period of time. In this situation, you may not have
sufficient cash to pay any creditors, leasers and suppliers. You may lose some
clients as well. If you have business interruption cover, your cash flow will
be protected. The insurer will help you with making all payments and with the
recovery of your commercial operations. For example, you can get money for
renting equipment which will enable you to keep working until you can buy new
one.
Consider getting liability insurance.
If you have clients visiting your home office or you work on
the premises of clients regularly or from time to time, you will benefit from
getting public liability cover as part of your business insurance package. If
you produce tangible products, you will need product liability cover. If your
company offers services like most home-based businesses, you should definitely
get protected with indemnity insurance also known as professional liability
cover.
Insure any business vehicles in an appropriate way.
If you use your private car or any other privately owned
vehicle for commercial purposes, you need to get commercial auto cover. This is
because an individual policy will not be valid for such vehicles. It is best if
you get a comprehensive commercial auto cover which protects your vehicle
against collision damage and various perils as well.
Finally, you should compare quotes from different companies
to pick the best business insurance policy for you.
Article Source: http://EzineArticles.com/8661338
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