There are currently about 15 million home-based businesses in the U.S. Running a business from home gives you many advantages, including freedom from commuting, tax benefits, low start-up costs, and flexibility. However, like all businesses, home-based enterprises require insurance coverage. There are several insurance options you can choose from based on your needs. Here's detailed information on this topic.
Your home-based business insurance policy can cover lawsuits, property damage, liabilities relating to injuries to third parties that occur on your premises, and work-related employee injuries. However, while you may choose to rely on your homeowner's insurance policy, the standard home policies don't provide sufficient insurance coverage for home-based businesses:
You can protect your home business better by purchasing a standalone policy or including particular endorsements in your home insurance policy. The kind of coverage you should get for your business will vary based on your industry or business. Some of the home-based business insurance coverage options you should consider include:
If you rely on any equipment to operate your business, you should carry business property insurance to cover damage or loss of your business property.
If clients and other visitors come to your residence for business reasons, you should consider getting liability insurance. Your liability insurance will cover you as well as your business if you're liable for personal injury to others or damage to others' property.
Your liability coverage will cover your legal costs as well as settlements and judgments resulting from claims and lawsuits made by business visitors who were injured while in your home. So, for instance, if an individual making business deliveries slips and falls while in your home and they sue you or make a claim due to the injuries, your liability coverage will kick in and cover the resultant costs.
If your business entails offering professional advice or services, you should consider carrying professional liability insurance regardless of whether you're working from home or not. Your professional liability insurance will kick in if your clients sue you for providing erroneous advice that led to losses.
If your business either supplies or makes a product, you should talk to your insurance agent about product liability insurance which covers damage to individuals or property emanating from a product you've supplied, manufactured, or designed.
If you use your vehicle for business purposes (to visit clients, pick or make deliveries, and more), your personal auto insurance won't cover the business-related automobile use. Therefore, you should consider getting a business auto insurance policy, which will protect you if you're in an accident while running business errands.
Other insurance policies are also important, depending on the kind of business you run. For instance, if you have workers, you may be required to carry workers' comp insurance. In addition, a commercial crime policy will cover losses related to crimes, such as fraud and equipment theft. Finally, riders and endorsements on your home insurance policy may add extra protection to your home-based business.
Reach out to our experts at Little and Sons Insurance Services for cost-effective insurance that will adequately protect your business. Contact us today.
