Don’t expect your homeowners policy to give you all the coverage you need.

There is an endorsement to the standard ISO policy, HO 04 12, "Increased limits on Business Property, " but this endorsement is not the answer to all of your needs. It provides only limited, well defined coverage. It provides $2,500 for personal property used for business and kept on the residence premises. But keep in mind that the coverage does not apply to "business property in storage or held as a sample or for sale or delivery after the sale" or, "business property pertaining to a ‘business’ actually conducted on the residence premises.'" For example, if you are a cosmetic sales rep (Mary Kay, Avon) and you keep inventory in storage, there is no coverage. If you are a day care provider there is no coverage in this endorsement for the cribs, high chairs, walkers, toys, etc. since the business is conducted on the premises.

Keep in mind, too, that most policies have a special sub-limit for electronic equipment designed to operate from the electrical system of an automobile. Therefore, car phones, laptop computers, tape recorders, fax machines, etc. that can be plugged into the cigarette lighter by any built-in adapter or connectable devices are subject to this limitation.

If you are a sales person operating out of your home and have limited inventory, some companies will cover you with the Business owners policy. The Business owners policy provides broad coverages for buildings, personal property, loss of business income and extra expense incurred to remain in business (after a fire or other covered cause of loss), premises liability and medical payments. If you have more than $1,000 of goods off premises in transit, you will need to add additional coverage. Goods stored at other locations must be added to the policy.

If you cannot qualify for a Business owners policy, your agent will probably have to build a special commercial package policy to meet your needs. You will need a competent commercial lines agent to help you. Commercial lines agents have both the expertise to design the appropriate coverage and the markets for your sales business.

You will need workers compensation coverage for any employee-even part timers.

You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup, or if the vehicle is owned by a corporation.