Better Check That Policy

Many home-based entrepreneurs assume that their homeowner's policy insures the business. Not so. The typical homeowner's policy won't cover accounts receivable or other business documents lost in a fire, for example. Recently, though, insurers have introduced policies specifically for home businesses. Some companies require you to have auto, home, or other insurance with them. One example: The Home Entrepreneur Program, new from Hanover Insurance Co., is a $225 add-on to the basic homeowner's policy. Regs vary by state. Home security systems and smoke alarms may earn discounts. For advice and helpful free brochures, contact the Insurance Information Institute (800 942-4242, www.iii.org).

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