Insuring your home-based business is not much different than when you have a brick-and-mortar location. You need to first evaluate your own specific needs. If you work by yourself, you will only need some basic coverage. If you have employees, you will still need a policy that covers them. Many locations require you to have insurance coverage, and even though they do not work directly with you they are still employees.
It is best to have independent contractors instead of employees when you work from your home. This way they must pay for their own insurance needs, and you do not have to worry about any local regulations governing people that work for you. That will eliminate a huge expense when it comes to insurance, but you will still need to look into the policy choices listed below.
- Business Property Insurance-If you are running a business from home, you must have some equipment that you use. Make sure that you use it solely for your business. This policy will cover any losses or damages to these pieces of equipment.
- Liability Insurance-This policy you need to have even if you do not have people coming to your home for business reasons. If your customers never come over, and if you have some type of home insurance against injuries on your property, you will not need this. Otherwise, get a policy to keep yourself always covered. Check with an online platform that will compare home and contents insurance for you, allowing you to pick the best one for you and getting on with your busy day.
- Professional Insurance-Whenever you own a company, regardless of whether you are home-based or not, professional insurance is a necessity. It will cover you against any claims against you that could lead to a lawsuit, such as failure to deliver or negligence.
- Product liability Insurance-Once again this is a policy that may not pertain to you. If you do produce, sell, or wholesale any type of product you need to have this type of insurance. It will protect you from customer claims of property or personal damage caused by you. Caused indirectly, of course, but it is your product, so it is still on you to deal with the issue.
- Business Vehicle Insurance-A home-based business that is based around deliveries would need to have a separate car for business purposes, and a separate insurance plan that covers everything that you do in the automobile, or anything that may occur when others are driving or riding in it.
- Home-Based Business Insurance-Some insurance carriers will have policies designed specifically for your home business. This type of coverage only covers little amounts of damage or responsibilities and is usually attached to your homeowner’s insurance policy.
As you can see insurance for a home-based business is not much different than having regular business insurance. You need to have the policies that cover your endeavor, otherwise one small issue could turn into bankruptcy for you, and depending on how you registered your company, it may affect your personal finances as well.
Do not take the chance, even though it may seem like you are not getting a good return on your investment. If you ever need to file a claim you will be patting yourself on the back for thinking ahead and getting a policy to protect yourself. If you never have any issues that require you to use it, you will be thinking about all the money that spent on premiums. It is never a waste of money to have the security of a good policy. As people say, “It is better to have it and not need it, than to need it and not have.”