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Get Yourself Covered

Insuring your homebased business isn't just a good idea--it's mandatory if you hope to keep yourself in business.

This story appears in the May 2002 issue of

You may be familiar enough with insurance to recognize your risks and liabilities as a homebased business owner, but are you adequately covered for all that's at risk? Many homebased entrepreneurs mistakenly think they are, only to discover when a disaster strikes that their policy doesn't cover everything. "Anybody operating a business out of their home should not rely on their homeowner's [or renter's] policy to protect them from the exposures that they have through the business--[there is] typically an exclusion of some sort with regard to business operations," notes David Golden, director of commercial lines for the National Association of Independent Insurers in Des Plaines, Illinois.

Exclusions include liability and coverage of business equipment. Golden suggests additional coverage on Internet-specific exposures so you're covered in case the next virus takes down your business for a few days. It'll also protect you on the liability side in case clients affected by your downtime decide to take you to court.

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