National Federation of Independent Business: “Every owner of a home-based business should consult with an agent experienced in insuring small businesses. Normally, your homeowner’s policy will cover some business-equipment coverage costs in the case of losses due to fire or theft, but if you’re not completely familiar with the details of your homeowner’s policy, snags could develop when making a claim. You may find, for example, that business equipment is excluded from coverage or that the policy’s deductible for computer equipment is higher than the replacement cost. Even worse, you might find that simply having a business in your home voids your homeowner’s coverage.”

via Dr. Cornwall, who adds: “Too many small business people seem to want to ignore issues such as insurance needs and employee legal issues. Even if your business is a home based business, it is a business. Don’t cut corners on matters such as these. The odds are very good that it will catch up with you.”