Guide to Starting and Operating a Small Business | 2018 Guide to Starting and Operating a Small Business - Page 63

frequently require this type of insurance. It can also be used to provide continuity in operations during a period of ownership transition caused by death or incapacitation of an owner or other “key” employees. Automobile It is obvious that a vehicle owned by your business should be insured for both liability and replacement purposes. What is less obvious is that you may need special insurance (called “non-owned automobile coverage”) if you use your personal vehicle on company business. This policy covers the business for any damage that may result for such usage. Officers and Directors Under certain circumstances, officers and directors of a corporation may become personally liable for their actions on behalf of the company. An “officer and director” insurance policy covers this liability. Home Office If you are establishing an office in your home, it is a good idea to contact your homeowner’s insurance company to update your policy to include coverage for office equipment. This coverage is not automatically included in a standard homeowner’s policy. 61