In this uncertain economy, starting a business can be a frightening and sometimes overwhelming prospect. For this reason, many entrepreneurs have started looking into working from their homes, cutting down on the costs of leasing or renting office space. This type of practice has extended from day care providers all the way to accountants, but one thing remains the same – business insurance is still needed, even if yours is based at home.

Recent reports put the number of U.S. home-based businesses at 11 million or more, but the majority of these companies do not have the right coverage. Although your home insurance policy may cover a portion of your business, typical homeowners insurance policies do not  protect your business in the worst case scenario. Your home based business may need various types of coverage such as:

Business Property – Any number of problems can occur at your home, so why wouldn’t you cover the goods, materials and tools you use to operate your business. If your computers, phones, etc. were destroyed because of a natural disaster, how would you pay to replace them? Insuring your property may be necessary for your business.

Liability – Will your company survive if a disgruntled employee decides to sue you for wrongful termination? What if a client comes to your home and falls? Having liability insurance for your home-based business can protect your company’s finances in case of these types of lawsuits.

Accounts Receivable – If a flood or fire came through your home, destroying all of your records, how would you be able to collect payments for client invoices? Covering accounts receivable gives you the ability to reconstruct your financial data without worrying about lost time or resources.

These are only a few types of  business coverages you may need, but every business is different. Contact your local insurance agency to discuss your home-based business insurance needs. Don’t let your company go without coverage.

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