Your Questions About Home Based Business Insurance

Daniel asks…

I started a small home based service business, what will I need to get general liability insurance?

For a general liability policy will the insurance company require certain proof or is it a simple policy to obtain?

admin answers:

Try the Business Opportunity Search Engine for liability insurance.

Your results from the community powered Business Opportunity Search Engine are much more focused than a general search engine and they will continue to learn and adapt, anonymously and automatically, based on the search behavior of every search you request. Http://www.businessopportunitysearchengine.com

Mandy asks…

Does anyone know what insurance companies are covering home-based businesses?

Specifically, I am starting a home-based e-commerce store, and my insurance broker has told me that he is unable to find any carriers that will cover product liability for a home-based company. I know there must be some carriers out there that will, because there are thousands of similar companies to mine out there. Any suggestions?

admin answers:

All the companies I represent for commercial insurance do not have a problem with home based businesses per se. It all depends on exactly what service or product you are offering.

This type of insurance needs to be done by an independent local agent that specializes in commercial insurance — none of the big name companies that specialize in auto and home insurance will likely help you with this, i.e. Allstate, State Farm, etc.

You can find a local agent through the website for the Independent Insurance Agents & Brokers of America at http://www.iiaba.net/agentlocator/findagent.aspx. All you need to do is type in your state and zip code, i.e. They do not keep any of your information or farm your information to anyone. Once you type in your state and zip code, you will be able to pull up a list of agents that are local to you and review their websites, the companies they represent and their specialties so that you can choose the agent that will best serve you.

I hope this information helps and wish you the best of luck with your business.

Mary asks…

What is the average home business liabilitly insurance monthly premium?

This would be an internet based business run out of my home, with $2000 in sales a month.
More specifically, this would be for a home based internet business that does $2000 a month in sales, in Illinois and makes no original products, but resells them. I have heard that companies who manufacturer the products hold the liability, not the reseller, is that true? Does it reduce my liability that I do not make the product I am selling?

admin answers:

It is absolutely not true that the manufacturer holds all the liability. If you sell the product that caused an injury, you are going to be just as liable as the manufacturer for the injury.

Lawyers are going to try to find as many deep pockets as possible, so they will do after you and whatever you have and your insurers.

So be sure to buy plenty of liability coverage.

Lizzie asks…

What type of insurance would I need for a small home based custom sewing business?

To protect my own personal assets from being seized by a potential lawsuit should an accident occur at a residence or business. Thank you. Karen H.
Apologize for not enough info. My business includes installation (e.g., window treatments, etc.) at residences and commercial sites. Thanks!

admin answers:

Dan, I suggest you join the “sewbiz” list at quiltropolis and search the archives there, and consult with other business owners there. Good, knowledgable, supportive group that sews everything from dog booties to wedding gowns to home dec.
Http://www.quiltropolis.net/maillists/maillistsdetail.asp?catid=Business

James asks…

Health Insurance – Private vs Group Policy for small home-based business?

I am currently investigating my options for providing health insurance coverage for my family. I am self-employed and planning to register an LLC for my work as an independent contractor and my wife’s employer dropped their health care benefits earlier this year. I have several questions if anyone has experience in the area of small business and/or private health insurance.

1. Is it correct that if both my wife and I are paid employees of my LLC I would be able to qualify for a group health insurance policy for the 2 employees – even if it is just me and my wife?

2. Will we be more likely to secure better health coverage (i.e. maternity, lower deductibles, etc) with a group policy than an independent family plan?

3. Are there any prohibitive costs which would make this approach unreasonable compared to private health insurance?

Any other suggestions are welcome, I want to begin comparing rates but need some guidance first. Thanks in advance.
Thank you for the information, I will investigate this further with an agent next week. Indeed I do not know the policies in my state (Ohio) but the individual who recommended this approach to me found great benefits in Connecticut.

As a new family we can’t take the chances of not having adequate health coverage. All the private plans that I investigated required riders for maternity coverage so it would be nice to get an expert opinion.
Thank you for the new responses. The purpose of forming the LLC is to protect my personal liability in the event that a future client would take legal action against me for whatever reason. I was curious about this approach since it was suggested by someone I trust, though I was not sure it would hold up in an audit.

It seems that it might be better to just buy a private plan and then take the deduction for self employment health insurance, as long as my wife’s employer does not provide health insurance benefits. Is that a better approach?

admin answers:

Most companies will offer group coverage for 2 employees. It is worth looking into but don’t expect that a group plan will be any less expensive. Depending on your state regulations groups are mandated to cover certain procedures, such as mental health, that you may not want or need, which will increase the premium. Contact a local agent that can do quotes for both group and individual from a number of companies.

Group policies of fewer than 10 employees are individually underwritten and the premium is based on those results, just like with individual policies. Companies can decline to offer group policies based on those results as well. Group policies choices are limited compared to what is available with individual policies. You will not be more likely to secure better coverage because of those limitations.

You can deduct the premiums of either type on your taxes.

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Your Questions About Home Based Business Insurance

Joseph asks…

What insurance company is the best for home based business coverage and bonding?

admin answers:

State Farm offers very good and affordable business coverage. Be sure to sit down with your agent and go over the coverage offered and know what is and is not covered.

Sharon asks…

Insurance for a home based business?

I import shoes and clothes from china and sell them on Ebay and thru other website.I live in a dodgy area in north london and am a bit worried about getting broken into or robbed at gun point.Does anyone know where I can get an insurance quote for these items? they are worth about £20,000. I live in rented property and dont have any type of insurance at the moment. thanks

admin answers:

I recommend you do a little research with the Business Opportunity Search Engine. Being community driven it’s a cross between a search engine and a Wikipedia. You can add, delete and improve the results for much more focused answers than a general search engine can provide. Http://www.BusinessOpportunitySearchEngine.com

Michael asks…

What type of insurance do I need? I have a small home-based design business.?

I have been told that I should carry insurance for this business. I design and occasionally manage projects on site. I would like to know approximately how much I will pay for the insurance.

admin answers:

If you are talking about interior design type projects at a minimum you need a Commercial General Liability or a BOP (Business Owners Policy) as suggested by Tom if you would also like to cover your sample books, inventory or other business equipment. If you have employees you will also need a Workers Compensation Policy and since you drive to job sites you should also obtain a Commercial Automobile Policy.

I would absolutely not take Justin’s advice on doing the endorsement to your Homeowners Policy. Even though it costs less money, it will not work in your case because you travel outside your home to conduct your business. The permitted incidental occupancies endorsement is used for businesses such as accountants that solely operate inside the home and is intended to cover a slip and fall type claim involving a client of the business that is visiting the home. The endorsement is not intended to be used to cover the liability of the business off site or in any other way.

My suggestion is that you contact a local independent insurance agent that specializes in Commercial Insurance so that he or she can go over your exposures and provide you with two or three different quotes, coverage options, etc. You can go to this website to find an agent in your area: http://www.iiaba.net/agentlocator/findagent.aspx.

I hope this helps. Good Luck!

George asks…

I need to find product liability insurance for bath & body products. This is a home based business.?

Products made and sold are handmade soaps, lotions, creams, etc. This is a Retail and Wholesale business. Must find reasonable general liability and PRODUCT liability for my growing business. Business is home based. I know there is coverage available, but I am not having luck finding it. Any help appreciated! Desparate!
trailerville,

I am already doing this. However, I am coming up empty handed. All the agents either don’t want to take the time to find coverage or companies are just not offering the coverage for my typre of product.

Is it possible to get a general liability coverage policy and then get a separate policy, say through Lloyds of London, for the Product Liability?

admin answers:

The Companies do not always want the products liability. I just insured a pharmacuetical maker, and had to write the products liability on a separate non-admitted carrier paper policy (kinda like Lloyds)

Ask around. And the person that answered that was a homeonwer specialist is correct. Your current carrier could deny coverage, check into it.

Paul asks…

Home Business & Insurance?

This is the second posting, as everyone who answered seemed to not understand what I was asking:

I am starting a home-based business in WV. I have obtained the required licenses in my state and have registered with the WV Secretary of State’s office.

There are no empolyees and almost all activity pertaining to the business is conducted elsewhere (at shows, flea markets, etc.) however a physical address was required to register the business, so I used my home address.

Question: What does this do to my homeowners’ insurance?

I will purchase a separate policy specifically for the business, so the liability aspect is covered. This question is ONLY about the homeowners’ insurance

My policy right now clearly states that it is for residential only. A commercial policy is 3x what the residential costs. Does registering a business to my home mean that I must get a commercial policy?
Liability aside, say my house burns down. Will the insurance company say that they will not cover because I had a business registered to the address and the policy was for strictly a residential dwelling????

What do people with internet-based home businesses do? Are they required to purchase a commercial policy just because business is conducted at the home? My situation is very similar to this.

admin answers:

Well, it’s up to the homeowners insurer. Most, for that kind of business, as long as you have a seperate GL policy, will ask you for a copy of it, and happily keep writing your homeowners insurance. Some still won’t want to write your homeowners policy. It’s up to the individual companay, and their underwriter, to make that choice.

No, having that business there does NOT “automatically” mean you need a commercial policy, with the type of business you have (no foot traffic, and no hazardous business property on site).

Regarding your house burning down. The insurance company can decline to pay for any contents used for your business. I don’t think they flat out have grounds to deny the claim, assuming that they haven’t asked you if there was a business on the premises lately. If you don’t lie, you should be ok.

Most people with internet based home business don’t worry about insurance. Most of the time, they don’t have a problem.

The only time a problem happens, is when a claim is filed. MOST people, don’t have claims.

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Your Questions About Home Based Business Leads

Helen asks…

Please Can Someone Tell Me the Ultimate Place For Buying “UK” Home Based Business Leads ?

admin answers:

I am not sure of your question, are you asking for any good home based business? And if so here is my website please do explore it and contact me if you need any further assistance. Thank you
www.ourfuture11.acnrep.com

Paul asks…

What do your prefer, self-generated or purchased leads in your Home Based Business?

I have been a Home Based Business Entrepreneur for nearly 4 years now and have had tremendous success. I am generating my own leads using this website http://www.createfinancialwealth.com and the cost equals that of purchasing leads. I have had more success with self-generated leads. Which type of leads do you prefer and why?

admin answers:

Self generated leads can be excellent since you know what your prospect is responding to and can be very custom for yourself and your opportunity.

There are a few downfalls though – you may be limited to the number of leads you can create, the process may not be duplicatable for your downline, and it can be VERY expensive if you are a novice at marketing (and have a lot of trial and error before you figure out what works).

Buying leads is easy to teach your downline, the cost per lead is typically cheaper than generating your own, and you can get the volume you need to make your business grow.

Susan asks…

where can i get cheap leads for my home-based business at a affordable price?

people who wants to have their own home-based business.

admin answers:

A popular source is HBBLeads.com

A lot of people in the company I am with order the Super Value Pack. You get 660 total leads for $36.00.

They have just about everything, real time leads, auto responder leads, telephone leads.. Etc.

Hope this helps.

Robert asks…

Who is struggling in a home based business to generate sufficient leads and sponsor new. productive people?

I have a solution to the embarrassing struggle of traditional network marketing, which may or may not be right for you, but it works.

admin answers:

Thanks for the tip. I will be sure to avoid it.

Betty asks…

Does anyone know how to obtain free leads for my Home Based Business??

I am a new Marketing Exec. w/ Melaleuca and I am new to the area in which I live. I have exhausted my warm market and wanted an inexpensive way to obtain quality leads.

admin answers:

Business Opportunity Search Engine

I recommend you do a little research with the B.O.S.E. Being community driven it’s a cross between a search engine and a Wikipedia. You can add, delete and improve the results for much more focused answers than a general search engine can provide.

Http://www.BusinessOpportunitySearchEngine.com

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Your Questions About Home Based Business Magazine

Steven asks…

Anyone know of a home based business review site that is reputable?

I’m looking for like a public, reputable published review of the biggest home based businesses. Something like wall street journal or money magazine or something that I know isn’t biased or sponsored by some business featured.

admin answers:

I recommend you do a little research with the Business Opportunity Search Engine

Being community driven it’s a cross between a search engine and a Wikipedia. You can add, delete and improve the results for much more focused answers than a general search engine can provide.

Michael asks…

I have a home based business can i get sued!?

I have a home based business very small selling magazines on the internet and door to door. Its a LLC, partnership with a friend of mine, if he was working and got i a car wreck and hurt someone and they sued the company could i lose my house because its the business address AKA Business headquarters.

admin answers:

If it was a company car, then I would bet they’d sue the company, if you were out on company business. The company could lose its assets, but since it’s an LLC, your personal assets are safe.

But seeing as how this is probably a personal car on personal business, you’d be liable on a personal level, if you didn’t have liability insurance to cover it.

Donna asks…

anyone know any thing about these home based buisnesses where the company pays you to stuff envelopes?

I have a Home business connection magazine, there are several ads in there from these companys or organization who claim they will pay you to stuff envelopes and send them out to receive 2 dollars per envelope that you mail, my question is does anyone out there know if these are legitatmate or not, and please i only want answers from people that know what they are talking about not from someone who has never delath with it and just wants to give me a closed minded guess, thank you

admin answers:

Tried it once, turned out to be a scam. Now that was years ago, but I doubt they have changed.

I would suggest you call the BBB in your local area and see if they have any record of these companies.

Joseph asks…

Valuing a small home-based business – your guesses!?

I’m interested in buying a community magazine which is 2 years old. It is a franchise & the original setup costs (and costs if the business is unsold & closes) were £250 + £125 a month, now just £25 a month ongoing fee. Profits seem to be about £4k per year and there are no business assets. There is a network of distribution points, contacts for printing etc. & booked advertising of £2k for the next 2 issues of the magazine. The owner doesn’t pay himself a wage so the profit excludes wage costs.

What would seem a fair valuation, given the above? In theory, turnover for the magazine could be £40k per annum according to the parent company but turnover has been only £12k pa so far.

This is a home-based business and I would be buying the name & the reputation – it’s a free magazine.

Any help greatly appreciated!

admin answers:

Be over cautious. Franchisees usually have a hard time of it whilst the franchisor takes the lions share. Remember you are tied to their products, strategies etc. Is it a good franchise. The business would only seem to be worth a nominal amount. Could you not do this outside of the franchise? What benefits is the franchisor giving? Assume you are not running the business. How much would you make as profit if you had to employ someone to run it? Don’t throw your self-employment in for nothing.
Is it a distress sale? Could you take the business on for free, or a nominal sum and then pay a percentage of your first one/two year profits?
Sorry if I sound too negative; if you think you can make a good go of it, do so. Be ruled by your head, not your heart!

John asks…

I want to submit a press release for my virtual assistant small business; what are some good sources?

I’ve already posted a press release to my local newspapers and have gotten contact information for the larger newspapers like the Washington Post, New York Times and Baltimore Sun. I am looking for things like trade magazines and community publications that other small business and home-based business owners read, since they are my target market. Any help is greatly appreciated.

admin answers:

Depending on your situation and budget, you could be better off using one of the services below. I have no affiliation or attachment to any of them.

Most if not all news agencies, media, and associated writes subscribe to Newswire type services. They rarely use Press Releases sent to them by individuals. There are too many reasons to cite here for their behavior, but it is the norm.

Individual contact and getting your release picked up is almost impossible unless you are an exceptional person pushing an exceptional cause or product

The time cost required to get all the media is enormous compared to paying one of these services $200 US $ and getting them to post it ‘on the wire’ where editors, reporters and other writers can pick it up. They all subscribe to the Newswire.

Getting free publicity by using Press Releases is recommended by a myriad of books in marketing, hence the press is contacted by countless others doing the same. To get the attention, you can use what celebrity agents do, they create something that is news worthy.

A media person will pick up your ‘story’, if you offer them something they can write or speak about. Look carefully and see what you can do to help them.

The sources of media contacts at the library are usually out-of-date, so look at the current publication of the outlet you want and it should have the contact info in one of the section. Usually this information is part of the editorial page.

Good Luck

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