Review all the business insurance coverage you need and obtain costs. Be careful to evaluate insurance coverage in light of any unique circumstances working from an RV might create.
by Martin M. Shenkman, CPA, MBA, JD
Consider general types of insurance as well as special coverage you might need for your specific type of business.
• Health insurance. This is the big gorilla. Investigate the costs of keeping your health insurance through your employer. You might be able to do this under federal law called COBRA for 18 months. But look into state law as well. Some states may offer other options. You will pay your former employer 102% of the cost of coverage (the 2% covers their administrative costs).
• Business coverage. You may need business liability insurance, coverage for damage to business equipment and property, etc.
• Business interruption and/or disability insurance. Once you're fully on your own, if you get sick or something happens to prevent you from working, some of your business overhead and other costs will continue. Your need for cash flow to pay expenses will continue, etc.
Review the costs of insurance coverage. Even if you opt not to buy the coverage, it can be informative to investigate or even apply to see what the dollars will get you. You have to get disability coverage while you have earnings to replace. If you apply after you've started your new business, so that there is no assured income flow, you may not qualify for coverage.
• Liability insurance. This will depend on the nature of your business and the work you do while RVing.
Martin M. Shenkman, CPA, Esq. sponsors a free legal website LawEasy.com.
Martin is an RVer with a special cause. He is an avid fundraiser for the National Multiple Sclerosis Society and The Michael J. Fox Foundation For Parkinson's Research. See his RV4TheCure.com website for how you can help him fight MS. Besides RV business tax and legal information, he will share some of his RVing and fundraising experiences with us.
Caution: This article and other columns can never substitute for professional legal, tax, and accounting guidance. These columns can provide only broad general advice, which may not apply to your situation. The rules differ substantially from state to state. Tax, business, and other laws change rapidly over time so there can be no assurance that the information in this column is current. The best approach is to review the ideas in this article with your own CPA and attorney. The application of general tax and legal principles to some of the unique facts presented by RV working is particularly complex and there is little specific law providing guidance to rely upon.
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