3 Common Clues You May Need Home Business Insurance
Posted by: Insurance Place by: August 18, 2015
In the age of the Internet, more people than ever operate businesses out of their homes. However, running a home-based business comes with a number of risks. And some of these risks may be right in front of you.
Your homeowners insurance policy will probably not cover any business-related incidents. Yet thousands of home business owners go on working without any thought to the dangers that could occur under their own roofs. Think this could be you? Here are 3 common indications that you may need home business insurance.
1. You think your homeowners or renters policy covers your business.
Your homeowners policy has been more than adequate enough for your needs. You’ve got protection for your home as well as your personal property. Shouldn’t this be enough for your home business insurance needs?
Not even close. In fact, if you are running a business out of your home without any kind of insurance at all, this could even invalidate your homeowners or renters policy. Then you’re really out of luck if something unfortunate happens. In this case, getting home business insurance is not only a smart move—it’s essential.
2. Your home is located in a high-risk area.
Think your insurance company will reimburse your small home business for stolen or damaged business property? Not if it isn’t under a specific business policy. Remember: A normal policy only covers your property under normal conditions. Since you run a small home business, you need a small home business insurance policy built for your business needs.
If you’re already paying higher costs for living in a high-risk area, your business property is that much more at risk. If worse comes to worst, a theft or flood could put an end to your home business.
3. You think you make enough sales to cover any disaster.
Maybe you’re one of the many daring entrepreneurs making your fortune online. Without having to pay for office space or commuter costs, you’re raking in the dough. So much so you think nothing can faze you; whatever comes, you can easily pay the required costs. But this way of thinking comes with a huge red flag.
What if you are sued? Your income, although considerable, may not be enough to cover the liability and court costs. At least, not enough to pay the claim and pay next month’s rent. If a client finds your services did not meet their expectations, your business could be held accountable.
Professional liability insurance for home-based businesses lends you a helping hand. By taking the brunt of the charges, home based business liability insurance can help your business bounce back from costly claims.
Now That You Know You Need Home Business Insurance…
So what are all these clues pointing toward? That’s easy—your need for a customized business liability insurance policy. A typical annual $200 policy can insure up to $10,000 of business property: laptops, phones, product, supplies, etc. Liability insurance for home business owners usually provides $300,000 to $1 million in coverage.
Start looking for home based business quotes today. Once you’ve got enough homeowners insurance and home business insurance, you and all you’ve worked for will be completely protected.