Workers’ compensation insurance provides coverage for an employee who has suffered an injury or illness resulting from job-related duties. Coverage includes medical and rehabilitation costs and lost wages for employees injured on the job. This insurance can be obtained from a licensed insurance company. The law in most states requires some form of workers’ compensation insurance. Refer to the workers' compensation authority in your particular state.

What is a surety bond?

A surety bond provides a form of guarantee that you will complete the work that you have committed to perform. Often referred to as a performance bond, the surety bond guarantees that you have the financial resources to complete the job from start to finish. Through its Surety Bond Program the SBA can guarantee bid, performance, and payment bonds for contracts up to $2 million for small businesses that cannot obtain bonds through regular commercial channels.

Will my homeowners' insurance cover my home-based business?

More than likely your homeowners' insurance will not cover your home-based business. In fact, operating a business out of your home may negatively impact some of your other homeowners' coverage. If you check your homeowners' policy, you may find that your small business is either underinsured or even uninsured. In most cases you will find that the coverage of business equipment such as computers, fax machines, copiers, and printers is limited to less than the cost of a new computer alone. Also, your homeowners' liability insurance coverage probably won't cover any injuries that may occur to the employees or clients that you have on your premises. Check with your insurance carrier to determine your exact coverage.