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Risks Of Your Home Business And Insurance Necessities

Risks Of Your Home BusinessHome-based businesses are growing in popularity these days. With opportunities galore, more and more people are opting to start their own business even if that means quitting full-time jobs they have been associated with for long. Actually, the thrilling prospects of bossing self and others is a great temptation for one and all. The feeling is so overwhelming that many even overlook the risks of home business. The resultant is that most home business ventures flop/fail in the initial years.

If you are thinking of getting involved in a home business, you will do better if you research deep into the risks of your home business first. It is certainly true that a home business presents the prospect of making money for self instead of earning on behalf of an employer (who hires your services); however, it also burdens you with immense responsibilities.

Once you launch your home business and make it your sole source of income, you will be required to bear huge financial responsibilities: you will have to make capital investment for your business, save enough to ensure a comfortable living for self and family (once you give up work), pay your employees (if you plan to have employees) and even chalk out their welfare.

These responsibilities together with the uncertainties and risks of your home business can best be handled if you have adequate insurance coverage for your home-based business. Insurance policies can indeed play a decisive role in the ultimate success of your business. Chosen judiciously, depending on the nature of your business, the policies can help you dodge the manifold risks associated with home businesses.

Health Insurance: Health Insurance should be your primary consideration. If your home business is a one-man show, you will be required to buy a health insurance policy for yourself. You may opt for an individual policy but the premiums will be slightly high. Affiliation to any trade or professional association makes you eligible for discounted health insurance packages. The "group of one" policy too offers you a good coverage at a relatively lowered price.

Go for a group insurance policy if you have employees. With the health insurance policy to take care of their (and their families) health requirements and you making the premium payment, your employees will be more committed and would perform better.

Life Insurance and Disability Insurance : Life Insurance and Disability Insurance are two major insurances. In most cases, life insurance is a prerequisite to qualify for a business loan. Life insurance policies provide for the financial needs of your family in the event of your untimely death. Since the risks of premature death cannot be ruled out, getting a life insurance for self will be a wise decision.

In view of the rising risks of long-term disability cases, purchasing Disability Insurance has become essential. A Disability Insurance policy pledges to pay you a percentage of your current income should you find it impossible to continue working due to some illness causing long-term disability. Considering the fact that such emergencies can drain you both mentally and financially, ruining your future prospects, you cannot just do without disability insurance. You can also consider a group insurance for your employees.

Now you can seek the Key Man Insurance protection for your home business. Under this particular policy, your business becomes the beneficiary if the owner dies prematurely.

Property Insurance: Property Insurance provides coverage for the physical assets including equipments and furnishings, inventory and supplies. The policy protects property against natural calamities and even secures you ample compensation in case you are made to pay for repair works.

Business Interruption Insurance: Business Interruption Insurance protects your business from natural disasters like earthquake, landslides, flood, fire, etc. The policy also promises to recompense you for loss of income during the calamity.

Comprehensive Liability Insurance: Comprehensive Liability Insurance coverage is necessary if the nature of your home-based business makes it unavoidable for you to host clients or customers within the premises. There are three different types of liability insurance policies and you will be required to choose between them depending on the nature of your business:

  • General Liability Insurance provides coverage for accidental injuries sustained by clients and business visitors
  • Professional Liability is a must if you pursue the professions of a lawyer or an accountant; and
  • Product liability protects you against damages caused to a third party because of a defective product.

Workers' compensation insurance: This insurance is essential if you have employees working out of your place. The insurance package covers you for all medical expenses you may incur in the form of injuries your employee may sustain while working for you. This insurance is applicable for all types of employees: white collar and blue collar; the only thing is that the insurance premium may be different.

These nearly sum up all the insurance coverages that you, as an entrepreneur, may seek. Consult your insurance agent and se lect the appropriate policies to ease the risks of your home business and make a success story of your venture.-------------------------------------------------------------------------------------------------------If you are a business owner get listed at Best Insurance Site, part of Localwin Network.
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