How to Insure a Home-Based Business.
Running a home-based business can be a great way to be your own boss and have more flexibility in your schedule. However, it’s important to make sure you have the right coverage to protect your business and your assets.
Homeowners insurance: Your homeowners policy may already cover some of the risks associated with running a home-based business, such as liability claims or property damage. However, you may need to add a business owner’s endorsement to your policy to get the full coverage you need.
- Business liability insurance: Business liability protects you from lawsuits if someone is injured or their property is damaged as a result of your business activities. This is an essential type of insurance for any home-based business, no matter how small.
- Property insurance: Property covers the cost of damage to your business property, such as your computer equipment, inventory, and furniture. This is another important type of coverage especially if you have a lot of expensive equipment or inventory.
- Cybersecurity insurance: Cybersecurity can help protect your business from the financial losses that can occur from a data breach or cyberattack. This type of insurance is becoming increasingly important as more and more businesses rely on technology.
- Workers’ compensation insurance: If you have employees, you are required by law to have workers’ compensation insurance. This coverage cost of medical expenses and lost wages for employees who are injured or become ill on the job.
In addition to these basic types of insurance, you may also need to consider other types of coverage, such as business interruption insurance or errors and omissions insurance. The specific types of insurance you need will depend on the nature of your business and the risks you face.
Types of Home-Based Businesses That May Need Insurance
While you may assume insurance isn’t necessary for your particular business, here are a few examples of businesses that may need home-based business insurance.
- Accountants and tax preparers
- Web design firms
- Online goods sales
- Caterers and food sales
Get in touch with one of our experts to get tailored advice for your home-based business. We will help you underwrite your risks & align policies to protect your business and your assets.
- Get quotes from multiple insurers to compare prices and coverage.
- Make sure you understand the terms and conditions of your policy before you sign up.
- Review your policy regularly to make sure it still meets your needs.
- Keep a copy of your policy in a safe place.