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Summer 2019  Volume 15, Number 2        

Home-Based Business Insurance Options

In addition to needing property and liability insurance for your home based business, it's important to consider two other important kinds of business insurance.

Workers Compensation: If you have employees, you need workers' compensation coverage. You probably shouldn't rely on being able to classify employees as independent contractors either. The criteria for qualifying people who work for you as independent contractors can be very difficult to meet.

Even if you believe that you hire people as independent contractors, you must be sure that they actually meet the legal description of who qualifies. The courts have looked at these, and other questions, to determine whether a person is an independent contractor:

  • Do you control or direct how the work is performed?
  • Is the worker paid hourly, commission-based, by the job, or otherwise?
  • Do you supply tools, supplies, or equipment that the person uses to complete the job?
  • Could you fire the worker without breaching a contract?

If you're not sure that someone is an independent contractor, seek advice from a workers' compensation consultant to answer your questions.

A minimum premium workers' compensation policy can give you protection and peace of mind.

Professional Liability or Errors and Omissions Coverage: General liability and business owner policies exclude liability arising out of the "rendering or failure to render professional services." If you give advice and recommendations, or create programs or products for your customers or provide a service, you need liability protection.

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In this issue:

This Just In...

6 Common Homeowners Insurance Coverage Gaps

Five Most Common Dangers in your Home

What Does that Speeding Ticket Really Cost?

Home-Based Business Insurance Options



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