When I first started working from home I worried about a lot of things. Will I be able to make an adequate living? Will I be able to focus on work and not get sidetracked? Do I need to get some sort of license? What kind of equipment or services will I need?
One thing I didn’t worry about was insurance. I didn’t even think about it. When I first tried my hand at being a Mary Kay Beauty Consultant (and that is NOT an MLM but a direct selling company, which I will define in my next post) I had a lot of inventory. I was in the same boat when I tried to sell Herbalife (which IS an MLM company.) If there had been a flood or fire or theft I would have lost my inventory and I would have been in pretty bad shape. Even though I gave up on those attempts to work from home I learned a valuable lesson about the need for insurance.
Insurance is a must have no matter what kind of business you run from your home. Even if you are renting this applies to you and even more so since you won’t even be covered by homeowner’s insurance. Even if the only business you do is on a computer what will you do if it is damaged or stolen?
Obviously the amount of equipment or inventory you have will determine the rate of insurance you will pay, along with the other variables that come into play in determining rates. You will need to be prepared to ask detailed questions of your insurance agent. If you don’t have an insurance agent that you already work with take some time to find a good one. This site, www.inside-insurance.com, might be very helpful to you if you want to learn about agents, types of insurance plans, billings, claims and the like.
If you do own your home don’t assume that your homeowner’s coverage will be sufficient. You could be looking at less then $3000 in coverage for any business property and it won’t cover loss of business revenue. You might be able to get enough coverage through a rider to your homeowner’s plan or you might have to buy a separate business policy. This is why it is crucial that you find a good agent and get all the information you can up front. Also be sure to re-evaluate your coverage at least once a year to ensure it is still adequate for your needs, especially if your business is growing.
Am I insured now? You bet!
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