With today’s internet technology, more people are starting home businesses. This can be attractive because there is no need to rent office space and you can save time commuting. Transactions are made in the comfort of your own home, and there is more privacy since less people are around.
Common mistake for homeowners is to think their home insurance will suffice when problems involved in running a business at home arise.
But a common mistake for homeowners is to think their home insurance will suffice when problems involved in running a business at home arise. In fact, if you are running a business from home, you will need business insurance coverage.
There are many risks that a home-based business is exposed to
Home and contents insurance policies may not cover accidents, damage or losses that occur in running a home-based business. Household policies may not take effect should there be any legal liabilities resulting from operating a home business.
Home insurance may cover some businesses
But there are policies that are specially designed for small businesses. You must notify your insurer if you plan on using your home for business or commercial purposes. The type of insurance depends on the business you are managing. You have to compare home insurance policies to get the best deal.
There are insurance policies for home-based businesses
It is best for you to compare different providers before you decide on what’s best for you. A home-based business must have the right insurance in order to protect you, your business and your home, considering the fact that household policies may not give coverage for business activities.
The following are types of insurance that you should consider when looking at insurance providers:
- Public liability cover for your clients and suppliers that you transact with at home
- Asset insurance for business equipment, inventory, tools, and office furniture
- Workers’ compensation for employees who work from your home
- Fire, storm, and theft cover for damage or loss of stock or any equipment
- Professional indemnity insurance that covers your business in the event of service or product failure
- Loss of income due to accident or illness
- Costs that arise due to business interruption
- Marine policy if you ship your products using freight carriers or post
Keep in mind that most policies do not provide cover for tools of trade, office furniture or computers that are used for your business. Talk to your insurer to better understand the ins and outs of home business insurance.
Do you have other ideas on how to compare home insurance and home business insurance? Share your insights in the comments section.