Under-insuring your home-based business puts it -- and you -- at risk
(February 6, 2016)
For many military spouses, operating a home business fulfills entrepreneurial dreams and creates a portable career. Many veterans have found that starting a business in their home is the answer to a successful career transition from the military.
But if you don't properly insure your business, you may be putting your personal assets and business assets at risk.
Risk assessment
Too often, home-based business owners assume their businesses are covered by personal insurance policies, according to the National Association of Insurance Commissioners.
“Without proper insurance planning, even the most promising home-based business dream can quickly turn into a nightmare,” according to an NAIC news release.
- Single, no dependents: Do you need life insurance?
- Important tax document to watch for
- Life insurance after — or in addition to — SGLI
- Holidays & new DoD rules mean it's time to check on renters insurance
- Life insurance can pay for nursing home, in-home care
- Comparison chart: 16 life insurance plans
“A lot of small businesses, especially home-based businesses, are not smart about how they approach insurance. If not, it can come back to bite them,” said Ken Walsleben, professor of entrepreneurial practice at Syracuse University's Whitman School of Management. He is also an instructor for the Entrepreneurship Bootcamp for Veterans with Disabilities program, part of the university's Institute for Veterans and Military Families.
But a number of military spouse entrepreneurs are asking the right questions and seeking the best advice, said Sue Hoppin, wife of an Air Force retiree and president of the National Military Spouse Network. The nonprofit works with other organizations to connect spouses to information, workshops and mentors for a variety of issues related to entrepreneurship, including insurance. They advise spouses to make sure they are properly covered for their type of business. Mentors can provide valuable advice as they delve into questions about insurance needs, she said.
"Every industry is different," she said. "One size doesn't fit all."
Click here to read the entire article