If you’re planning to start a business from the comfort of your home, you might be asking yourself, “Do I need insurance for a home-based business, or will my homeowner’s policy suffice?” The short answer is yes, and you will need separate insurance. Your homeowner’s insurance will not protect your business equipment or merchandise from loss, or your operations from cyber fraud or even your clients who could be injured on your property. To find out more about insurance for a home-based business and what it will cover, read on.
Do I need insurance for a home-based business?
If you’re a self-employed marketing professional, for example, and your computer is the only item you need to protect, you might not need a full-blown insurance policy for your home-based business. You could, however, benefit from having additional coverage added to your home or rental insurance. This will give you the added protection to cover your business property and any liability that happens on your “business premises.”
If you’re running a more extensive scale operation and you have the equipment, stock, and merchandise at home, then you’ll likely need a separate insurance policy to protect all the components of your business from loss and theft.
Even lawyers, accountants, and other professionals who work from home need certain coverages to protect them from risks to their business, such as privacy breaches, errors and omissions or financial losses.
No matter what type of business you are running from home, it’s important to talk to an insurance broker to find out exactly what type of insurance you’ll need and just how much coverage is right for you.
Home-Based Business Coverage Options
To get you thinking about the type of risks you’ll need insurance for, here are some of the most common home-based business insurance coverages available:
If someone were to break into your home and steal your equipment or merchandise, your business assets would only be covered if you had a home-business insurance policy.
If a client comes to your home and injures themselves on your property, your homeowner’s insurance would fall short. To avoid facing a serious lawsuit, you need the proper insurance in place that offers liability coverage for your home-based business.
Errors and Omissions
If you have errors and omissions insurance, you are covered against lawsuits associated with the advice or information you provided that could result in financial loss to a client.
Water damage, a fire, or even a power outage could put your home-based business in jeopardy. With business interruption insurance, you would have all the coverage you need to pay for new equipment or a temporary office.
Not sure if you need insurance for your home-based business? Call us today at Tanner Insurance, and we’ll show you all the coverage options for your business type and size.