At Work

Do You Need Insurance for Your Home Business?

From successful business entrepreneurs to prospective start-ups with a big idea, but little funding, everyone is finding ways to work from the comfort of their pajama pants. Today, there are more home businesses than ever before, although the legitimacy of each enterprise fluctuates wildly. One hot point of interest for home business owners is whether or not to invest in business insurance. Although your home business may only feel like a hobby you conduct in the comfort of your slippers, insuring your home business is just as important as insuring any real business.

Consider This…

 

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Image via Flickr by jnyemb

It’s not outrageous to assume that your homeowner’s insurance policy will cover anything bad that might happen at your house, even if you run a business within your home. Take note: you are not covered. Purchasing insurance is a matter of when; before an event happens or after. You’re better off taking preventive measures. A legitimate business can actually put you at risk for a variety of reasons. Before you begin shopping around, remember that not all insurance policies are the same. If you want complete protection backed by experience and user approvals, check out indeed.com. The reviews of Assurant are especially glowing.

Business Property Insurance

Anything you use to help assure your business has protection is business property insurance. This includes all of your company’s infrastructure including computers, hardware, furniture, and more. Ironically, since many people use their own personal items in a home business setting, they are actually putting themselves at risk because homeowner’s insurance won’t cover damages to business-related equipment. Therefore, if your home experiences a severe flood or fire you risk losing almost everything.

Automobile Insurance

If you use a vehicle to travel to meetings, deliver goods, or help you in any business-related way, your personal insurance policy won’t cover accidents while on the job. Just like the double-threat of losing your home and business space to a fire or flood, losing a personal car to a business-related accident is disastrous without insurance. Although mixing personal and business expenses may seem like a way to cut corners, without insurance you make yourself a target.

Product Liability Insurance

Product liability insurance protects your business from being implicated in a case where someone who purchased your product may have used it to harm another person or damage property unlawfully. This comes in handy when your product has “small choking hazards” or “harmful chemicals”.

General Liability Insurance

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Image via Flickr by Rae Allen

Do people come to your home during business hours for business-related purposes? Whether personally or professionally, if you have visitors, liability insurance is essential to protecting yourself from unintended accidents. The popular example involves a delivery man slipping and falling during a business-related delivery. Normally, a homeowner’s policy will protect the homeowner from having to cover the accident, but a business-related accident works differently.

Don’t let yourself fall into a trap because you didn’t want to pay for insurance. Nobody ever thought they would be the one to deal with catastrophe until the day it hit them personally. Don’t be a victim, protect your home business with business insurance. It’s more than necessary.

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