Get Yourself Covered Insuring your homebased business isn't just a good idea--it's mandatory if you hope to keep yourself in business.

You may be familiar enough with insurance to recognize your risks and liabilities as a homebased business owner, but are you adequately covered for all that's at risk? Many homebased entrepreneurs mistakenly think they are, only to discover when a disaster strikes that their policy doesn't cover everything. "Anybody operating a business out of their home should not rely on their homeowner's [or renter's] policy to protect them from the exposures that they have through the business--[there is] typically an exclusion of some sort with regard to business operations," notes David Golden, director of commercial lines for the National Association of Independent Insurers in Des Plaines, Illinois.

Exclusions include liability and coverage of business equipment. Golden suggests additional coverage on Internet-specific exposures so you're covered in case the next virus takes down your business for a few days. It'll also protect you on the liability side in case clients affected by your downtime decide to take you to court.

Covering your assets is imperative to help you recover from the unexpected, but are you covering your most important asset--yourself? Even if you have life insurance, what happens if you become temporarily or permanently disabled? Don't think it can't happen to you. Take Rosemarie Rossetti, who left her job as a professor at Ohio State University in 1997 to start her own publishing and consulting business, Rossetti Enterprises Inc. June 13, 1998, changed her life forever: A tree crashed down on her during an afternoon bicycle ride, knocking her unconscious and costing her the use of her legs. It also cost Rossetti her business, which had to be dissolved while she underwent intense physical rehabilitation.