Do You Need Insurance For Your Home Business?

By George Devendorf

Well, do you? Ever thought about it at all? You've got a Homeowners Insurance Policy. Right? Well, years of experience tell us that most people think their home business is covered with just their Homeowners Insurance. And that is fine for your 12 year old daughters' lemonade stand. But when the "hobby" becomes a business, things can change!

Sure, you would not be the first one to have a stolen business computer covered by Homeowners, but understand this... It is a flip of the coin! If it was taken together with the TV, some jewelry, and other valuables, you may have won.

Typically, Homeowners Insurance excludes a business and all business property and liability. Want the good news first? OK. Many times coverage may be added inexpensively with just a couple endorsements to the policy, but it wholly depends on the underwriting stance of the insurance company. And the even better news is that SOME Homeowners Insurance already include an endorsement for a small amount of business personal property, typically $500-$2500. These are intended for the person who takes their work home with them. If all you wanted was the good news, you can stop here. If you want to understand the bad, read this: Let us consider the example of a small home eBay business. There are several around these days and you probably know of one or may be such a business. For this example, assume that you have an inventory of about $10,000. and there is a small fire, damaging the inventory. The insurance adjuster comes out and comments "Boy, you sure had quite a few fancy widgets!" To which you respond, "Yeah, we sell them on eBay." Strangely, the adjuster is interested. "Oh really? My wife collects fancy widgets, and we talked about selling a few on eBay ourselves. How is that going?" Now you are in business, and one of the first things you ever heard about advertising was that word of mouth was great and free.

In this case you will find, that word of mouth is not so great and certainly, is not free. That smell of smoke is not from the fire a couple days ago. Your goose has been caught, slaughtered, plucked, basted, skewered, and is turning nicely on the rotisserie as you speak. Now the really bad news. What we have been talking about thus far, is the property angle. Do not forget you also have your Liability situation to think about. While this article cannot get into all the nuances, just understand that Liability is your legal responsibility to others for damages to their person or property. Translated - what you owe someone, because of something you did, or did not do, that caused them injury in some way.

For instance, in a Home business related situation, a gentleman stop by our house to pick up an eBay purchase he had made from us. Had he slipped on ice and fallen, we probably would have been liable for his injuries. Heck, we WOULD have been - he was an attorney! But his presence, being business related (picking up a purchase, even if it was "only" eBay), changes the degree of care owed to him legally.

It is recommend you endorse your Homeowners Insurance for an office exposure, should something of this nature be possible in your business situation. The premium is only about $15. and it covers PREMISES Liability. There, that was easy to take care of, wasn't it!

But read on, it gets worse again. Let's suppose that the gentleman who so innocently stopped by my house had gotten hurt using his eBay purchase. He is an attorney, remember - just my luck! He had bought a collectible from the Worlds Fair in Buffalo, NY, but let's suppose he had bought a small antique machine or utensil. The sale intended that it be hung on the wall and admired. Friends come in and ask, "Hey, what the heck is that thing?" But this guy decides to see if it still works. Not an unusual or unpredictable event. No one ever thought to put that in the auction bill, not that it would matter. Heck no one even knew it SHOULD have had a guard on it! He loses a finger trying it out. Do you know what an attorney's finger is worth? You are about to find out!

Let's not even imagine his seven year old child is the one injured. She was going to be a brain surgeon. Guess she will have to settle for being an attorney now. Would you want a surgeon without all their fingers? Wouldn't inspire confidence, would it? No matter how they really lost it. This is where you are starting to wonder if your business is really worth it all. You find out that your Homeowners Insurance has an exclusion for PRODUCT Liability. Yesterday you had never heard of it and today you are quickly becoming an expert. You actually start reading the forms that came with your policy, the ones that you filed away ten years ago.

Lucky you! They weren't put in the trash like so many others have done. You are looking for that famous loophole, as described in so many movies. You think there is the slightest possibility that this has never happened to anyone else and the insurance companies may have not thought of excluding such an event. Silly YOU! The story could go on, but you have suffered enough. And if you don't get the picture now, you may never anyway.

Now you wish you had Business Insurance. You tell everyone you are in business, don't you? Why, you had business cards printed, just last week! Did you go into the print shop and ask for personal cards?

Just what sort of insurance should have been carried? Go ask your Independent Agent for a Business Owners Policy, aka BOP. You can often get one for small businesses for a minimum premium of $250. The companies that offer them at that price are getting to be fewer in number, but they are still available. If you are in New York City, it's going to be higher, certainly. But it should not be higher than a $500 minimum premium, unless your small business has really grown. Have your agent fill in the blanks to best tailor it to your specific situation. So there you have it ladies and gentlemen. Don't you wish you had just read the last couple paragraphs first? For $250 you can go to sleep and forget about fires and product liability what-cha-ma-call-it.

Oh, did you say that you have an employee (or volunteer labor)? Can't you just hear it now, "Oh boy, something else I hadn't thought of to loose sleep over." Watch for the next in our series for the home business. Try to think of these as a natural pep pill.

Author: George "Corky" Devendorf. Having retired from his 30+ years insurance career, he know shares what he learned from both sides of the industry in his blog, SecretsOfOwningYourOwnBusiness.Com (http://www.secretsofowningyourownbusiness.com). Common sense advice from the real world. If you are new to business stop by for good free advice that others have paid dearly for.

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Commercial Liability Insurance

By Steve Valentino

Liability insurance is when you cover any visible or possible liability that you may have with proper insurance. When businesses or commercial establishments purchase insurance to cover their liabilities, it is called as commercial liability insurance.

For any commercial firm, the commercial liability insurance pays part of or the entire amount of the damages caused by liabilities of the company that may have been imposed due to business-dealings or by law. It also has the potential to pay for the cost of legal defense in case of any claims. Adequate commercial liability coverage is a must to survive in business. Without it, a commercial firm would have to bear the cost of damages itself.

One has many options of applying for commercial liability insurance. However it is the insurance company that, by using their underwriting standards, determines if the business is eligible for insurance and for how much. The insurance companies have classifications on businesses, and any new commercial liability insurance has to fall in one of those classifications. This means that even a company with a totally clean record might still have to pay a high premium for commercial liability insurance.

Insurance is mostly sold directly by a company or through their agents and brokers. There are also individual and independent agents that, unlike exclusive agents, at times represent several insurance companies.

If one is considering buying commercial liability insurance, he or she should remember to contact several liability insurance agents and look around for various companies. At the same time, the firm should also ensure that it thoroughly understands what it is buying.

Often an independent agent can be a good source to provide comparisons on various commercial liability insurances policies available. However, one should remember to properly search around and even surf the internet to do some research on his or her own, before finally opting for one company and policy over another.

Also, do remember to check that the agent you choose has experience in your line of business and whether he or she is licensed to do business in your state. You can find about an agent's license from the Commissioner of Insurance by calling them up or visiting the website.

Liability Insurance provides detailed information on Liability Insurance, General Liability Insurance, Professional Liability Insurance, Pollution Liability Insurance and more. Liability Insurance is affiliated with Short Term Disability Insurance.

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Business Insurance is Not an Option - It is a Necessity

By Casey Yew

A woman walks into the restaurant you own, and is tripped up by a nail sticking out of the floorboards. She seems fine, but a week later she is back with an attorney and a neck brace. Apparently she hit her head in that fall, and isn't doing so well. Or perhaps you are a mechanic and a customer wandered into your shop and cut his leg. Perhaps you own a pet store and a little girl got a nasty bite from sticking her fingers in the mouse cage. Whatever your business, liability is just a part of the cost of doing business.

It is almost impossible to run a business without liability insurance, and in many places it is a legal necessity as well. Business insurance covers liability cases so that a risk you cannot afford (like paying someone else's medical bills) is replaced by one that you can afford (such as a monthly premium).

Other types of liability include fire legal liability, which means that you are the liable party in the case of a fire. If you forget to turn of a space heater before you head home for the night and this results in damage to your landlord's property, then you are liable and the damages are covered by the fire legal liability part of your business insurance.

Liability is not the only type of insurance to be covered by business insurance. Business insurance can also function like a home owner's insurance policy for the office, protecting the building (if you own it) and the equipment and possessions that are inside. What responsible homeowner does not have his home protected against fire? Shouldn't the same precautions be taken for your business as well?

If your business were to be destroyed, a business insurance policy would cover things like desks, chairs, seating in your reception area, computers, equipment, and anything else of value that is a part of your business operation. Business insurance can also provide coverage against things like loss of income, earthquakes, and in some areas even flooding.

If a natural disaster takes your business away from you, then your business insurance policy is there like an umbrella, helping to protect you and your family from the losses and breaking your fall, so to speak. Your business insurance policy is there to help you rebuild and go on with your life.

If you are an employer, you are also required to have worker's compensation insurance. This insurance protects you in the event that one of your employees in injured on the job. Your insurance will pay for treatments for your injured employee.

Other insurance might include insurance for your company vehicles in the case of an uninsured or underinsured driver, health insurance for yourself and your employees, and life insurance. Taking good care of your employees and offering benefits to them is a sure way to attract and keep the best employees possible.

One little accident could just about destroy a small business unless that business is insured against the disaster. If you could prevent an emergency situation, why wouldn't you? Taking care to make sure that your business is insured properly and thoroughly is only one step toward running a successful business, but it is a vital one. Insurance is not an option, it is a necessity.

Get Your Insurance Guide Now. Find Out More Information about Different Types of Insurance such as Medical Home, Car, Dental, Term-life, Travel and Business Insurance.

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Boiler And Machinery Insurance

By Alexander Gordon

Boiler and machinery insurance refer to the insurance of machines. Boiler insurance is not applicable only to boilers, but any machine that generates electrical power, for example, generators, motors etc. Boiler and machinery insurance include the damage to not just the machine, but also to the surrounding area through explosions, fire etc.

Why Opt for Boiler and Machinery Insurance?

If you have ever tried to settle a simple insurance claim related to breakdown or damage to machine or equipment, you will know how difficult it is to get the company to pay for additional damages like destruction of property, loss of business etc. Boiler and Machinery Insurance covers not just the damage to the machine, but also other damages caused by the malfunctioning machine. These damages may include business loss and property damage. In fact, some types of Boiler and Machinery Insurance also cover damages to neighboring properties, and pay for setting up of temporary arrangements for running the business.

Who Needs Boiler and Machinery Insurance?

Anyone who runs any kind of business that uses electrical or mechanical devices of some sort should buy a Boiler and Machinery Insurance policy. Many people have the misconception that Boiler and Machinery Insurance is only for large factories and manufacturing units. As a small business owner, you probably do not use heavy machines, but even the smallest of businesses use equipment like air conditioners, refrigerators, ovens, coffee machines etc. Malfunction in any of these equipments could cause an explosion or fire, damage to neighboring as well as your own property and business loss. Boiler and Machinery Insurance will cover all these damages.

What Does Boiler and Machinery Insurance Cover?

Boiler and machinery insurance are of different types. Some kinds of boiler and machinery insurance cover a specific boiler that is recognized by year of manufacturing or number. Other Boiler and Machinery Insurance cover electrical motors. The more extensive Boiler and Machinery Insurance cover all kinds of machinery and equipment, as well as damage caused by equipment malfunction.

How to Choose Boiler and Machinery Insurance:

Most small business owners opt for boiler and machinery insurance to cover the items that are not covered by other kinds of insurance policies, like property or vehicle insurance. Choose a policy that not just pays you for the damaged machine, but also helps you recover from business losses caused by the accident. This means that you should look for a boiler and machinery insurance policies that will help you set up a temporary business unit after an accident, pay for damages to the property and compensate for business losses.

If you are a small business owner who is unsure of which boiler and machinery insurance policy to opt for, you can approach a small business consultant for help. Insuring your machine is the best way to safeguard yourself from not just damage to your equipment, but also business losses.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

Business Owners all across the country are joining "The Community of Small Business Owners” to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.

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Internet Liability Insurance

By Alexander Gordon

Any type of business needs the protection of insurance to secure it against various hazards. Business by its very nature is a financially risky proposition, thus needs to be safeguarded for growth and profitability. An Internet or online business is very different from traditional brick and mortar business as it has no solid spatial structure and does not have customer footfalls.

Internet Businesses:

Most Internet businesses are home based or run from specially rented or owned space. The equipment required is minimal. The whole thing is based around the computers. With the ever-changing technology, even the big, bulky computers have been converted into sleek, portable, technically advanced laptops. Homeowners’ insurance may cover basic business equipment such as personal computer, laptop and related computer equipment.

Once the primary or major business component is taken care of against loss or physical damages, there arises the need to protect the Internet business with some type of specific insurance policy. Some of the most common types of insurance policies for businesses include property insurance, liability insurance, malpractice insurance, worker’s compensation insurance and prepaid legal insurance. The other type of insurances includes health, dental, vision or life insurance covers for business owners and employees. On analyzing your business type, situation and knowledge of various types of insurance cover, you can determine the type of business insurance best suited to your Internet business.

Property Insurance:

Property insurance cover is necessary if you lease or finance business property for running the Internet business. If the business is run from home with minimal equipment, then homeowner’s policy will take care of that. If your home office business equipment is expensive, it may be insured against damage or theft. If the equipment is minimal then to purchase a policy to specifically cover it may prove to be a poor financial policy, as you will end up paying higher insurance premiums.

Liability Insurance:

Liability can arise in any business. Liability insurance takes care of the risk arising from any product or service offering provided to customers. You may decide to purchase this insurance depending on the element of risk inherent in your offering.

Workers’ Compensation Insurance:

This is required for most businesses that have employees on their rolls. The requirements vary in different states depending on the number of employees. The insurance pays for workers’ medical expenses and lost wages if the injury is sustained on the job.

Malpractice Insurance:

Also known as professional liability insurance, it is required by firms providing professional services that require licensing. These include services like counseling, medical services, architectural services, etc.

Prepaid Legal Insurance:

This type of insurance covers legal expenses such as attorney and retainer fees and can be quite useful for certain types of businesses.

Internet businesses are a comparatively recent phenomenon. Owners should take advantage of the insurance coverage provided by various plans. Do also purchase insurance for aspects that are mandated by law.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

Business Owners all across the country are joining "The Community of Small Business Owners” to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.

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Commercial Insurance Considerations in the Mobile Service Business Sector

By Lance Winslow

Are you considering on starting a business and worried about the costs of insurance? You should as the number one cause for business failure is lack of cash flow and/or capital. The initial down payments for annual insurance policies are high and the premiums even higher, but in this day and age of lawsuits, you better be protected just in case.

In fact many companies will require that you have business commercial insurance just to enter their property. Commercial Insurance considerations are key in the Mobile Service Business Sector and you will need to provide additional insurance certificates or certificates of insurance nearly everywhere you go. Corporations and their risk management departments will require them.

Insurance is not cheap and is a significant cost and has increased since 1992 every single year. It is a killer for small business. But until we Shoot All the Lawyers, as some shoot from the hip entrepreneurs will belligerently call out, you have to deal with it and pass this onto the consumers, everyone does, except the Hispanic Illegal Aliens that you compete with "no business license, insurance, identification" and that is the way the real world works?

You need a good insurance policy and you must protect your company and your personal assets. Cutting short on insurance could cut the life of your business short as well. I certainly hope this article is of interest and that is has propelled thought. The goal is simple; to help you in your quest to be the best in 2007. I thank you for reading my many articles on diverse subjects, which interest you.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/. Lance is a guest writer for Our Spokane Magazine in Spokane, Washington

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