In our 21st-century world, more and more people are choosing to work for themselves. The rat-race of extended hours and the limited ability to set one’s own course teamed with a desire to go for one’s dreams, is causing people to want to become entrepreneurs where they can be the boss and set their own destiny. But with running a business from one’s home comes the responsibility to keep the dream alive. For example, insurance is needed to protect against liability, theft, employee injuries, and more. Without it, you’re taking a chance, just like you would be taking a chance without home insurance or car insurance. What kind of coverage can protect your home-based business? It depends on what type of business you have. Standard homeowner’s insurance covers a lot of things, but it doesn’t typically include everything you would need for your business. Therefore, today, most insurance companies offer packages for businesses that cover the basics with the option to add additional coverage that would fully take care of everything that you’ll need. What are some of the things that these packages would include?
Property Insurance
You may run your business out of a space you own or a space you lease. Either way, you’re going to need property insurance. This is not a kind of insurance that you’ll want to skip. Many business owners run their businesses out of their home, and therefore their homeowner’s insurance would cover things like damage or theft of property. However, there is business property insurance that is focused specifically on what equipment you use to run your business. Why? Because homeowner insurance typically contains content limits would not cover everything for your business under homeowner’s insurance. Business property insurance will include things like equipment, inventory, furniture, etc. due to theft, fire, storms, etc. Furthermore, if you remove your equipment from your home to conduct business, such as removing a laptop or a massage table, it won’t be covered under homeowner’s insurance if it is not on the property. So in this case, property insurance is extra important. Keep in mind that damages due to natural disasters like earthquakes or tornadoes may not be covered under any of this kind of insurance. Pay close attention to the property insurance policies for the nature of your business.
Liability Insurance
This kind of insurance is an important one. Home based businesses, by their nature, are typically small, are run on a minimal scale and contain limited funds. Therefore, a lawsuit from a disgruntled client can put your business out of business faster than you could imagine. If one of your clients is injured in your home while you’re conducting business, keep in mind that homeowner’s insurance typically doesn’t cover mishaps that occur in your home. Running a business means you do it without knowing what the future holds. There’s no telling if you will ever face a lawsuit, but business liability insurance, which is often called errors and omissions (E&O) insurance, will protect you if you do run into a lawsuit. It’s an insurance that will cover you against negligence claims by an employee or a client and from failure to perform claims by a client. Check your homeowner policy and compare it to the business liability insurance to make sure it is appropriate for your business.
Business Interruption Policy
What happens if your business faces an interruption due to a catastrophic event or another event? If your business is put on interruption, you’ll face a loss of income, and that can severely affect your business if your business is not covered. Not every business will be ideal for this kind of insurance, but it is worth it to look into it.
Worker’s Compensation Insurance
Unlike business interruption insurance, some insurance is sometimes always necessary. Worker’s compensation insurance is one of them. If you have employees working for you, you’ll need worker’s compensation insurance. In some cases, it will be mandatory in some states, and it is state regulated policy. In the states where it is compulsory, you’ll be subject to a fine for not having it. Therefore, you’ll need to add the policy as soon as you have one employee and each state will determine what is covered and what is not. If you have employees, you’re an employer who is expected to take reasonable care of your workers. It’s your job to keep them safe, but when an accident happens, this kind of insurance protects you from work-related injuries or work-related illnesses. It will cover an employee’s disability and medical treatment as well as death benefits. Many homebased businesses consist of one employee, and that’s the business owner. But if you have one or more people working for you, worker’s compensation insurance should be one of the first on your list.
Business Automobile Insurance
Do you use vehicles as part of your business? These are considered company vehicles that should be insured to protect your business. Standard, comprehensive insurance will cover the vehicle in the case of an accident, but business owners need to make sure that their vehicles are totally covered for their business, especially if they use the car for deliveries or transporting of clients.
Having the right insurance for your business can mean the difference between a successful business and one that is forced to shut down. It can cost a lot of money to run a company, and you’ll find yourself wanting to cut corners wherever possible. However, cutting corners on insurance is never recommended. Check with your insurance company for packages that would save you money but also include everything that you need for your business. In today’s times, insurance for home-based businesses is comprehensive in nature and meant to be user-friendly. Never go with the first insurance company you know unless you have thoroughly looked into what they offer. The competition for insurance policies is stiff, and therefore, there are a lot of options available. Click here to find out more.
