You may not have thought much about business insurance for your home-based business. However, even if you only work for yourself, you still should consider it. Your homeowner's insurance will likely not cover any, or very little, of your business-related liability. Here is more information about how business insurance works and whether it is the right fit for your home business.
Why Get Business Insurance?
Whether you work at home or have your own shop or building, business insurance protects you from losses that other insurance doesn't cover. Business insurance covers your equipment, such as your computer, as well as any inventory that you keep in your home or storage space. Special liability insurance helps protect you against lawsuits. You can even buy business insurance for your car. Your regular car insurance sometimes won't cover you for accidents that occur while conducting business, even if all you do is make an occasional delivery.
Who Should Get Insurance for a Home-Based Business?
Many people with home-based businesses can go without extra insurance. However, you should consider business insurance if any of the situations listed below apply to you.
You Allow Customers Into Your Home
While homeowner's insurance covers visitors to your home, it will not cover business liabilities. If your client trips and falls in your home, or gets bit by your dog, then you will have to pay for those injuries out of your own pocket.
You Have Expensive Equipment and Inventory
You can insure your equipment, as well as any product inventory stored in your home or storage area, against theft and destruction. That way, you can recover and restart your business faster if these items are rendered lost or useless.
You Have Employees
Even if your employees are independent contractors, you should still protect your business against employment-related claims. You could be sued for harassment, discrimination, wrongful termination, or breach of contract. An employee can file a suit even if he or she didn't work at your home.
You Keep Sensitive Information on Your Computer
If you keep customer lists, credit card numbers, or other client information on your computer, and it is hacked, then you may be liable for damages. Data breach insurance may fit your needs in these cases.
Business insurance is a good idea for home-based businesses, especially if you have any liability risk. Depending on how you run your business, business insurance protects you from business-related hazards and losses. If you are wondering if you should insure your home business, then contact an insurance agent to see what types are available for your needs.Share