If you operate a small business of your own out of your home, you may think that you can get away with saving some money on business insurance. But is this really the case? Or should you be investing in business insurance even if you work from home?
Continue reading for the answer to this important question, as well as some more valuable information on how to protect your company’s assets.
Yes, You Need Business Insurance Because Homeowners’ Insurance Isn’t Enough
Your homeowners’ insurance policy may provide you with only a limited amount of coverage that would protect the equipment that you use for business each day. In fact, most of the standard homeowners’ policies that are out there will actually exclude coverage that would otherwise be provided to businesses operated from a home.
This means that you would not be covered for lost income, lost data, or liability. Purchasing the right business insurance is imperative at that point in order to protect yourself and your assets and keep your business going despite any setbacks you might face.
Business Insurance Will Cover What Your Homeowners’ Insurance Won’t
Your business insurance will come in very handy in a variety of situations.
For example, if your home is ever robbed and your business equipment, such as your computer, is stolen, you may not fully recover its value from your homeowners’ insurance. But if you have a business insurance policy, your business property will be covered.
Also, if there is a fire and your home is damaged and you lose your company’s assets, your business insurance provider will compensate you.
And if a delivery person slips, falls, and gets hurt while bringing a business package to your door, your standard homeowners’ liability policy might not cover it because it’s considered a business delivery, so you’d need another policy to take care of the costs of a lawsuit.
Types of Insurance Policies Available
If you’re ready to invest in business insurance for your home-based business, you may be wondering what types of policies are available.
First off, you can invest in a rider to your current homeowners’ insurance policy. This would essentially be an add-on, so it is the least expensive option.
Another policy you can invest in is the in-home business policy. This would cover more than the standard rider to an existing homeowners’ policy.
And, finally, if you would need over $10,000 in coverage, you really should opt for a standard business insurance policy.
As you can see, it’s definitely necessary to invest in business insurance even if you work full-time from your own home. Your homeowners’ insurance will fall short when it comes to giving you the compensation you need for everything from people hurting themselves on your property, to theft and other disasters that result in loss of assets and property. Just make sure to check out sites like Biz Insure to look for the policies that give you the coverage you need at the budget that you feel comfortable with.
Naturally you might feel as if you don’t quite have the budget to take out coverage for your work-from-home operation immediately, but it’s well-advised for you to organise this insurance as soon as you can, ideally from the very beginning. With the likes of One Direct Business and the various insurance solutions offered, the established modus operandi is that the best solution is paired with your specific needs, which means your business insurance needs can be tailored even to your current situation, taking into account the budget you have to work with and what type of basic coverage you need.
As your assets grow along with the growth of your home based business, you’re encouraged to institute constant re-evaluations of what the coverage you’re currently paying for actually covers, in which case there might be a dynamically evolving arrangement between you and your insurance service provider to ensure you’re always adequately covered.
The bottom line is you simply need insurance and should at the very least get basic coverage.