Starting a home based business may sound appealing (working in your PJ, setting up your own hours, no boss !!). However, you must ensure that your company is properly insured. Here are some questions to ask you about your endeavor.
- Will goods be stored in your home?
- Do you have office equipment?
- Will there be customers on your property? What happens if a customer slides on a wet floor or an icy pavement?
- Are you selling a product? What happens if a customer is damaged by your product?
- Do you give a service? What happens if a customer is not satisfied with your work? A mistake is made? Or if you missed a deadline?
If you can answer yes to any of these questions, you may need an insurance policy. There are some types of policies available:
- Your homeowner's policy. The typical homeowner's policy does not provide coverage for a customer injured on your property and may only provide limited coverage up to a specific liability limit for damage to goods or office equipment associated with your business. For smaller home based businesses, you may be able to add approval to your current policy of providing coverage. Depending on the scope of your business, you may need a separate policy to provide adequate coverage.
- A home business policy. This type of policy is for medium-sized businesses ($ 2,500 – $ 10,000 in assets). It will provide both property and liability protection. What does liability insurance do? It can provide coverage if a customer is damaged by a product or ties and falls on your porch. The liability coverage can also defend if a customer suits you to miss a deadline.
- An Insurance Policy. This type of policy applies to larger home-based companies that have a lot of goods and / or equipment and need more and different types of liability insurance.
If you are considering starting a home based business, talk to your local independent agent. They will be able to help you decide which policy is just right for your new business.
The above information is of a general nature and your policies and covers may differ from the examples given. Please read your policy in its entirety to determine your actual coverage available.