How to Get Home Business Income Insurance

Owning and running a business from your home offers you the flexibility that so many families need these days. One of the risks of running a home-based business, however, is that if something happens, you don't have an employer to cover your lost wages. One way to guard against financial upset is to get home business income insurance.

Difficulty: Easy

Instructions

Things You'll Need:

• Business records
• Records of your income
• Health insurance policy

Get General Liability Insurance

1. Buy general liability insurance to cover your home business. While this type of insurance will generally not cover loss of income, the types of insurance that will cover income loss are clauses that will be added to this general policy.

2. Tailor your general liability policy to the nature of your business. Adding liability insurance against slander and libel will help preserve your income in case your company is sued based on Internet sales or advertising.

Purchase Business Interruption Insurance

3. Get business interruption insurance. This type of insurance will help you get your business back on its feet after something like a natural disaster. It will provide you with money for the income you lost while your business could not function, as well as providing help to pay business expenses that keep building up while your business is down.

4. Add a business interruption clause to your existing small business insurance. Typically, business interruption insurance is not sold as a stand-alone policy, but is an extra feature you can choose.

5. Review the types of natural disasters that occur in your area, and calculate the typical amount of time it takes to recover from such natural disasters. Ask that your business interruption insurance cover more than this period of time, so that you are covered as long as your business may be down.

Add a Disability Policy to Your Health Insurance

6. Contact your health insurance provider and get additional coverage for yourself. This type of insurance will help cover you if you are injured while working in your home business, even if your home owner's policy doesn't cover it.

7. Calculate the amount of income necessary to keep you going if you could not work, and ensure that the disability policy will pay that amount or more.

Tips & Warnings

• Get a workman's compensation insurance policy if you employ others to work in your small business. Your home owner's policy will not cover people who are injured inside your house if they are there to work.