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What's personal is personal

Home_business_2 Small business owners, young entrepreneurs, and even independent salespeople (for example, Silpada distributors), face some of the same questions when it comes to insurance coverage. 

Think about insurance this way: What’s personal is personal and what’s business is business. It all sounds like simple logic but seems to get very confusing and can be when it comes time to submit a claim.

Your everyday exposure
For example:  Everyone seems to have a computer these days at their home and is looking to make a quick dollar here and there.  At what point are you running a business out of your home?

E-bay has become the portal for many entrepreneurs to sell their product.  If your house catches fire and your computer goes up in flames, how are you going to collect on your money that is floating out there?  Is your computer even covered?  Who has coverage if you are having a Silpada party at someone’s home and a candle gets knocked over and causes a small amount of damage to the home that is hosting the event?

Off to that presentation
Let’s examine a personal auto policy.  You are a small business owner or entrepreneur and are driving to your destination for that great presentation.  Your cell phone rings and you realize it’s on the other seat, you reach for it and at that split second the car in front of you stops.  The crash occurs! 

Your sales samples and laptop fly forward and are damaged severely.  Not a problem, right?  You’re insured. Well, the personal auto policy excludes loss to business or office equipment, or articles which are sales samples or that are used in exhibitions.

What about that handyman contractor?
I’m not picking on contractors but they love their pickups (so do I). And they are a necessity if you are a contractor or handyman. 

Have you seen a pickup lately?  They have huge aftermarket rims, tires, lift kits, and running boards.  I can only guess an added cost in upwards of $10,000. 

Are these items covered under your personal auto policy?  As a contractor, do you ever carry items that might be business related?  Examples are dishwashers, ovens, countertops, even water heaters.  Are these items covered? Are these items you pick up for the homeowner?

These examples are very generalized and they only way to make sure you’re covered is to talk to your agent.  Don’t worry if you feel like your insurance agent is interrogating you.  Questions need to be asked in order for an insurance agent to do his or her job.  I don’t know very many insurance agents (or companies for that matter) that don’t want to write business.  I do know they don’t want to lose business due to lack of coverage.

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