If you have a home-based business, you may be wondering whether to get commercial insurance. But it’s not simply a question of if you should be insured; it’s also a question of what sort of insurance to get.
Many successful entrepreneurs and small company owners now run their firms from the comfort of their homes. However, just because you can conduct your business while wearing fuzzy slippers doesn’t mean it isn’t a genuine business. As a result, it must be ensured in the same way as any other brick-and-mortar business.
Neither homeowners’ nor renters’ insurance covers home-based enterprises, so it’s critical for small company owners to be aware of this. As a result, if you operate a business from your house, you should consult with an insurance professional who can provide you with more information about the various types of home-based business insurance that are accessible for your firm.
The sort of insurance you’ll need for your home-based business is determined by your line of work. The following are some examples of kinds of home-based business insurance:
Business Property Insurance
If you have a home-based business that uses any sort of equipment, such as a computer, fax machine, printer, furniture, or anything else, you’ll want to obtain business property insurance in case something goes wrong. Because your homeowners’ policy doesn’t cover losses to company equipment caused by fire or water damage, you’d need business property insurance.
Liability Insurance
Liability insurance is required if you have clients or other visitors to your home for business purposes. Liability insurance protects you and your company from being held responsible for injuries caused to others or property. Again, your homeowners’ policy will not protect you against claims made by business visitors who were harmed at your home-based business. If a customer makes a business delivery to your house and falls while walking inside, for example, you’ll need liability coverage, not homeowners insurance, to be protected.
Professional Liability (Acts Coverage)
Professionals who operate from home, just like professionals who work in their own offices, require professional liability insurance. Professional liability insurance can help protect you against clients (or patients) filing claims of negligence or non-delivery if you’re a consultant or working professional.
Product Liability Coverage
If you operate a firm that creates or sells a product, contact your insurance agent about product liability coverage, which protects your business for injuries to property or people caused by a product you created, produced, or supplied.
Business Automobile Coverage
Your personal auto policy does not cover the business use of a car if you need to make (or collect) deliveries, meet with clients, or otherwise use the vehicle for business purposes. Business automobile insurance will be required instead; this will give coverage in the event of an accident.
Other Coverages
There are a variety of home-based business insurance policies that may be essential depending on your operation. Workers’ compensation insurance is one example of this, as it covers injuries to employees. Equipment theft, fraud, and other crimes are all covered by commercial crime insurance. Furthermore, endorsements and riders attached to homeowners’ policies as well as specialized home and office coverage are critical coverages that small company owners should consider.
So, do you need insurance for your home-based business? Depending on the variety of possible company liabilities, you may be better off having at least a few different policies in place, depending on your requirements. Even if it’s in your home office, having one less thing to worry about might help you get some sleep—even if it’s just for a minute.
BOLT (Business Owners Liability Team) is a national insurance agency dedicated to protecting small business owners that are licensed to operate in all 50 states. BOLT agents assist entrepreneurs in selecting the appropriate insurance coverage for their companies and themselves. Get a free online comparison of business insurance rates.