2012 Copyright Komes Network 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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