It is not uncommon for people to assume that their homeowner's insurance policy also covers their home-based business, but this often is not the case. You must always make sure that your insurance broker is aware of the fact that you are operating a business from your home.

The determination of what your business is will affect the kind of coverage you need. Bookkeeping or accounting may be covered under "incidental office use" listed on your homeowner's policy. However, a hair salon, massage therapy business, or other such business operations from the home will probably require special coverages.

When deciding what coverage will be best for you, a broker will ask you a number of questions, including:

• Do you have clients coming onto the property regularly?
• Do you make or sell a product out of your home?

Liability insurance will most likely be your major need. The personal liability coverage on your homeowners policy will not cover you for a business-related loss. Also, the limits on business equipment on a typical home policy would likely not give you adequate coverage in the event of a total loss. Therefore, it is extremely important to discuss your specific business operation and your particular needs with your insurance broker so that we may assist you in properly protecting your livelihood.

* All coverages are subject to limitations and exclusions. Please speak to a licensed insurance agent, read the policy wordings and the certificate of insurance for definitions, limitations and exclusions.