Many owners operate their businesses from the comfort of their homes. Just like any business, it needs to be insured just like any other brick and mortar operation. It is important to know that neither homeowners’ nor renters’ insurance policies cover home-based businesses for small business owners. It is wise to work with an insurance professional who can provide you with more details on the kinds of home-based business insurance that’s available for your business if you run a business out of your home. Today, we at InsureWise would like to discuss home based business insurance for a better understanding. Depending on your business or industry, the type of coverage you need for your home-based business varies. Below are some basic types of common home-based business insurance you should consider in your policy.
Liability Insurance
Liability insurance is necessary if you have clients or other visitors come to your house for business purposes. From being liable for damages caused to another person or property, liability insurance protects you and your business.
From claims made by business visitors who may have been injured at your home-based business, your homeowners’ policy won’t protect you. For example, you’ll need liability insurance, not homeowners’ insurance, in order to be covered if someone making a business delivery to your home slips and falls.
Business Property Insurance
You should have business property insurance to be insured against loss or damage to property used in your business if you use any kind of equipment to run your home-based business, including a fax machine, computer, furniture, printer, and so forth. For business equipment losses by fire or flood, your homeowners’ policy doesn’t typically provide coverage. You’d need business property insurance instead.
Product Liability Coverage: To protect your business for damages to property or a person caused by a product you designed, manufactured or supplied, you need product liability coverage if you run a business that makes or supplies a product.
Professional Liability (Acts Coverage)
Professionals working inside their home need professional liability insurance, similar to professionals working out of their home. Professional liability insurance can protect you against potential negligence or failure to deliver claims made by your clients (or patients) if you’re a consultant or working professional.
Business Automobile Coverage
Your personal auto policy won’t cover the business use of the vehicle, visit clients or otherwise use a vehicle for business purposes if you need to make (or pick up) deliveries. To provide coverage if you are in an accident, you’ll need business automobile coverage instead.
Additional Coverages
Depending on your business, there are other home-based business insurance coverages that may be important. You may need workers compensation insurance if your business has employees for instance. Commercial crime insurance protects against losses from fraud, equipment theft, and other crimes. In addition to specialty home and office policies endorsements and riders on homeowners’ policies are important coverages that small business owners should consider.
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If you run your business out of your home, contact InsureWise and let us help you find the best coverage for your policy and ensure you and your business are protected. You can also click here to get an online quote.
