Insurance: Do you Need It? by komesnetwork


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                               Insurance: Do You Need It?

Insurance is a sore subject for most businesses. For the work-at-home entrepreneur with a

virtual corporation, it is tempting to decide you don’t need it. In many cases this is true: you don’t

need as many types of insurance as big corporations, nor do you need enormous policies.

However, there are a few types of insurance you should consider investing in as the owner of a

virtual corporation.

         Health insurance: Even if you don’t have employees, you should still have health

            insurance for yourself. Many state governments offer affordable family health

            coverage for entrepreneurs and individual business owners—and whatever you end

            up paying, it will be far cheaper than the $5,000 to $10,000 in medical bills you would

            incur with an uninsured hospital stay.

         Content/property insurance: Your property insurance probably covers your home

            office, as it is located on your property. Check with your insurance company to be

            certain. If you have a lot of equipment in your home office, however, you should

            consider a separate content policy to cover it in case of theft or fire, flood, or other

            natural disasters.

         Disability and workers’ compensation: If you’re an individual running a business by

            yourself, or plan to hire only contractors, you don’t need disability or workers’ comp.

            However, if you hire permanent employees you will probably need both. Most states

            require employers to carry workers’ compensation insurance. Check with your state

            government for their policies if you decide to hire an employee.

         Business interruption insurance: This is a great policy for the individual business

            owner. If your business is interrupted due to illness, injury, or a number of other
factors, business interruption insurance will pay a percentage of your normal earnings

while you get back on your feet. This can help to ensure you won’t lose your business

if your are forced to close temporarily.

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