Benefits of Taking Home-Business Insurance Policy
Taking out a home-business insurance policy can be an important step for any business, no matter how small the operation may be.
Home-based businesses are not nearly as risky to insure compared to other types of businesses; however, there are some unique risks that need to be considered. A professional insurance broker can help you navigate these risks and choose the home-business insurance policy that works best for you and your business.
When choosing a home-business insurance policy, there are several areas to consider:
• Risk of Injury – A home-based business can expose you to injury risks. Even if the main activity of the business does not include physical work, it is important to consider activities that could subject the business owner to injury. For example, if you are a computer programmer who works from home but have children, your business is at risk for injuries caused by the children.
• Equipment – Any equipment used in support of your home-based business needs to be included on the insurance policy. This includes any computers or other devices necessary to conduct business, but it also includes equipment that is used for other purposes. For example, if you are a plumber who works out of your garage, there might be tools in the garage that are not being used for your plumbing business. You need to make sure this equipment is included on your policy.
• Equipment Breakdown – Historically, many home-based business owners have purchased their own insurance policy to cover equipment breakdown. However, most people do not realize that they can use this same coverage to protect themselves against loss or theft of cell phones, tablets and other mobile devices used in the course of business.
• Theft – Although it is rare for a home-based business to experience a burglary, it is important to consider theft as a risk. You may want to purchase extra coverage for items that have been identified as being particularly valuable for your business. This could include tools used in the course of your business or unique equipment such as musical instruments that are expensive and difficult to replace.
• Injuries – This includes injuries to the business owner, but also injuries to employees. If you have one or several employees working for your business in your home, they need to be included on your insurance policy. You will want to check with an insurance specialist about including them under the business portion of the policy.
• Fluctuations in Income – Home-based businesses can be affected by an economic downturn in ways that are unique to this type of business. If you experience a lack of work in the home-based business, make sure your insurance policy can be adjusted during these slow times.
• Replacement Cost – When choosing a home-business insurance policy, it is important to make sure your replacement cost will be covered in the event of a loss.
• Liability – Make sure your policy covers liability for accidents to any customers who visit your physical location. You might also want to consider additional coverage if you have employees or independent contractors who work from home. An independent contractor is likely to be considered an employee by insurance companies, so it is important to make sure this coverage is included in your home-based business insurance policy.
• Watercraft – If you use any watercraft or other vehicles during work, they should be covered under the liability portion of your home-business insurance policy. This can include anything from a small boat to a large truck used for deliveries.
In addition to these areas, there are also some additional items to consider:
• Product Liability Insurance – If you are selling any products, product liability insurance is important for protecting your business. This can include anything from selling finished products to distributing foods or other materials that could cause injury if they are not made properly or safely.
• Umbrella Insurance – In addition to your standard insurance policy, you might want to consider adding umbrella liability coverage. This is similar to an increased level of liability on the policy, but it also includes a higher deductible. It can be a way of protecting yourself from more serious risks without paying for coverage you don’t need every day.
Taking out a home-business insurance policy can be an important step for any business, no matter how small the operation may be. Home-based businesses are not nearly as risky to insure compared to other types of businesses; however, there are some unique risks that need to be considered. A professional insurance broker can help you…