Insuring a home based business is just as important as insuring any other business venture. You must be protected against theft, fraud, lawsuits, and injury to yourself and others. Even if you do have homeowners or renters insurance, you probably are not protected for your home based business through that policy.
Step One: Determine your insurance needs. You need to do independent research that is not coming from any one insurance company to find out what insurance you need to have for your home based business. An agent will try to sell you as much as he can, whether you need it or not. When determining the type of insurance you need, be sure that you insure all of your equipment and office space. You will need business use insurance for your vehicle, and you will likely need some type of worker's compensation insurance if you hire any employees - even if it's just for a couple of hours a week. Other insurance may be required based on the type of products or services you provide.
Step Two: Shop around for insurance agents. You do not want to pay more than you have to in order to insure your home based business. Get online and obtain free quotes, and then go through your local yellow pages and talk to some smaller agents.
Step Three: Compare your research and find the right agent for you. Do not just check price. Make sure that you will have all of the coverage you need from one location, and at the most economic value. Go through the list you made in Step One, review the deductibles and premiums, and pay close attention to what the insurance actually covers.
Step Four: Apply for the insurance policy and make a down payment. Most insurance for home based businesses can be paid on a monthly basis. However, the more you pay up front the cheaper it is in the long run.
Step Five: Review your insurance policy carefully once everything has been processed. Be certain that everything is exactly as promised in the quote. Check back with your agent any time anything changes in your business to ensure that you remain covered. This is especially important if you change locations, hire additional employees, change or add vehicles, or change your business model in any significant way - any of these things can make sections of your policy null and void, and you don't want to be uninsured just when you need it the most.