Risks of Home-based Business

Running a home-based business is fun, can be exciting, is occasionally overwhelming and is definitely an adventure much of the time.  It also has inherent risks.  You can identify and minimize those risks.  Pat McKay, of Amer/McKay Insurance, specializes in helping embroidery and apparel decoration business owners identify and then protect themselves and their business from excessive risks.

Here are her thoughts on what you need to know when starting a home based Embroidery Business:

1. Very little of your business Personal Property (computerized machines, software, hoops, threads, blank or finished goods etc.) is covered under your homeowners/renters insurance policy.
2. Customers who come to your home-based business and fall, trip or are otherwise injured would not be covered by your home insurance.
3. The cost of equipment, software, supplies and accessories adds up very quickly.  Keeping an up-to-date inventory is a great thing to do when you start of your business.  You can then just add or delete when you make purchases or sell items. *
4. You are starting a business; customers will hold you financially responsible for mistakes, injuries and promises of the quality of the goods and services you sell.

According to McKay, every new business owner needs to talk to an accountant, an attorney and an insurance agent for advice on the best way to set up the business for taxes, records, protecting your other assets and of course, for making money.  Be sure each professional understands you and your embroidery business before you do business with THEM.

*   Request a free Embroidery Business Inventory List at mckay@amerinsurance.com

For additional information - contact Pat directly: