Home Business Insurance Concerns
Is Your Home Business Properly Covered?
Do you operate a business from your home? There are lots of advantages to starting a business out of your home. You can save money on office rent, enjoy a 30 second commute to work, and enjoy a flexible work schedule.
But even people who operate from home still need to consider many of the same things that people need when they work out of an office, commercial store, or factory. One thing you must think about is home business insurance. Insurance is all about managing risks. Consider some common risks that every business, even home businesses, face today.
Of course, lots of new home business owners rely on their personal insurance. This is especially true if they start small, do not have other employees, and only perform their business duties on a part time basis. Sometimes this works out, but sometimes it can be a very big mistake. Let us look at some typical types of coverage that a home business may need.
Heath Insurance – Many home business owners are married to an employed spouse. They rely upon that spouse’s insurance for coverage. Others purchase an individual medical plan for their own family.
If the business does employ other workers, the owner may decide to pass on a medical plan. Others may find that a small group medical plan is an affordable solution to help them keep good employees. Many studies have shown that group medical plans do help businesses attract and retain good workers.
Vehicle Policies – Do you rely on your personal car insurance to cover your auto. You really need to check on the coverage and limits of your current policy. If you use your vehicle for business a lot, you may be taking a big risk. You may want to consider buying commercial car insurance or adding more coverage to your current personal policy. Sometimes it is very simple to add business auto insurance coverage to an existing policy.
What other risks does your business take? Your own need for insurance protection will vary by the type of business you run.
Professional Liability Insurance: If you provide professional services, you may need professional liability coverage. Many accountants, lawyers, and insurance agents work out of a home office today. They still need to purchase the same sort of professional liability policies that they would need if they worked out of an office.
Business Property and Liability Insurance
If your company makes a product, you may need business liability insurance in case a customer claims damage from one of your products.
If you need expensive equipment and supplies to operate, you should consider the limits of your homeowners policy. Sometimes the personal property protection is not very high. What if your equipment, computers, or supplies got damaged in a storm or stolen? How would you replace them? You may need to add more coverage to your personal policy or take out a business policy.
One custom solution that many small business people choose is called a business owners policy (BOP). It provides a package or business protection the same way your current homeowners policy provides a package of property and liability coverage.
Every home business is different. They all vary by the type of work they do, the number of employees they have, and the kind of coverage that would be best for them. You can consult with an experienced insurance agent to help you find the right solution. You can also start looking for coverage, policies, and prices by using free online business insurance quotes.
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Are you concerned about having proper coverage for your own home business? Learn more about small business owners policies for home business.
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