** If you're running a business out of your home here's how to get specialized business insurance, and save money on home-based business insurance... **

Q: I've retired from my decades-long career, but that doesn't mean I'm ready to roll over and play dead or spend my life on the golf course (just a few afternoons a week will be enough). I've decided to use my new found freedom to start a home-based business. I'll now have a home office to protect. What do I need to do to be sure my homeowner's insurance policy is giving me the coverage I need to protect my new business and its income? Or do I need special insurance for a home business?

A: First, join the club. Home-based businesses are one of the hottest, and fastest-growing trends in work today. And they're a great alternative to sitting on your duff or golfing every course in the state now that you're retired.

Your insurance advice question is not an easy one, and the answer is: It depends. Homeowners insurance generally isn't designed to cover business use of your home. In fact, if you're operating a home-based business, it may even invalidate some of your homeowners coverage. Your first step is to check with your current insurance company to find out what's covered, what's not, and what might come back to bite you if you don't do your homework.

The coverage you need depends on the type of business you plan to run. Running an internet-based business with no employees, no products, and minimal equipment calls for a lot less coverage than a full-scale production or consulting company, with employees, and clients, that just happens to have its office in your home.

Some questions to ask yourself if you will need home-based business insurance: Will clients be visiting you at home? If so, you'll need separate business liability insurance. If one slips and falls on your office carpet, your homeowners insurance won't cover it. Even something as innocuous as a UPS driver delivering a load of computer paper can turn nasty if he slips on the ice on your driveway, because he was delivering business supplies, your homeowners insurance policy may not cover the liability and medical bills. Do you sell a product? Consider product liability insurance in case someone is injured using what you sell them. Do you give financial advice? Again, liability coverage will be crucial if the advice proves bad and has serious financial consequences for your clients.

If you'll be dependent on your home-based business income to maintain your lifestyle, consider business interruption insurance. If your house burns down, your business goes too. How long will it take you to replace your equipment and files, set up a new office to get up and earning again?

One option may be to simply add some riders to your existing home policy. The first step is to go online and get the insurance advice. Several companies now offer specialized policies that include a home-based business insurance on your regular policy. Compare coverage, and rates from several companies to find the one that works best for your special needs.

Sources:
http://sbinfocanada.about.com/cs/insurance/a/insuranceHBB.htm

http://www.iii.org/individuals/business/