Business Insurance - Is Your Business Covered?

by Kristine Evenson

One of the most common mistakes that small business owners make, specifically those who work from their homes, is in forgetting to purchase an insurance policy to cover damage of equipment and other business materials. If you work from your home, your home owners insurance likely has limits, which may mean that your insurance policy might cover only $12,000 in data reconstruction expenses. Some insurance coverage to discuss with your insurance agent would be the following:
=> Coverage for Office Equipment Good coverage should not only cover the cost of repairing or replacing your equipment, but should also cover the loss or damage to software programs as well.

=> Coverage for Reconstruction of Lost Data What happens if your computer is zapped due to a power surge or is infected with a virus? Will your insurance policy cover you if you lose data on your computer as a result of damage caused by the power surge or virus? A good reconstruction policy should cover fees and expenses associated with the reconstruction of data. Coverage for reconstruction may require that a rider be added to a basic insurance policy.

=> Coverage for Errors and Omissions If you are writing or designing a lot of material that your client requires to be reproduced, you may want to consider coverage for any errors and omissions. In the event that you make a mistake (e.g. you put a wrong price in your client’s catalog as $10 instead of $10,000), your client could hold you liable for any damages he or she sustains as a result of your error. This could include, but is not limited to, re-printing charges, postage fees and/or the actual amount of damage caused as a result of your error or omission. => Coverage if You Can’t Work in Your Office What happens if your office is damaged due to a fire or flood? While your equipment may be replaced, will your insurance policy cover you in the event you are unable to work in your office? Will your insurance policy cover the expenses for a temporary office such as office space rental, or the installation of telephone lines?

=> Coverage of Customer Files/Data Would your insurance policy cover you in the event that your customer’s data was stolen or damaged? Many insurance policies cover customer files with no deductible.

=> Coverage for Legal Fees While most insurance companies don’t represent your business in a legal action unless it is as a result of a personal injury or employee related claim, prepaid legal services (those “insurance-type” legal programs which charge a monthly fees of $15-30) can greatly reduce the costs of legal fees. Coverage may vary from state to state, but typical legal coverage for small businesses includes up to 1-4 hours per month of legal consultation (e.g. review of a contract) at no charge.

Kristine Evenson may be contacted at http://www.capturehits.com info@capturehits.com.

Kristine Maveus-Evenson is internet marketing strategist and online promotion consultant. She provides services such as website optimization, and link popularity enhancement. With a talent for working with small businesses, her coaching and teleclass sessions provide an engaging and liberating perspective on business growth strategies. You can reach her by email:info@capturehits.com or on the web at http://www.capturehits.com

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