Home Business Insurance - Do You Need It?

Do you have a home business? Do you carry the necessary home business insurance coverage? Have you even considered the need for insurance protection? Believe it or not, if you have a home business, no matter how big or small, you most likely need to have a business insurance policy to protect your business against the potential liabilities it faces on a daily basis.

Insurance is probably the last thing on your mind if you have a home business. Many people find themselves in the position of being an entrepreneur when they didn’t necessarily set out to be so. Typically, they will not have planned out how to correctly start a business, and therefore the idea of being properly insured never crossed their minds.

Why You Need Coverage

Most businesses, even the ones that are run out of the home, deal with clients and customers. Anytime you have contact with other individuals in a business setting, you are at risk of being found liable for physical or monetary damages to these individuals. For example, if you have clients or customers that come to your house, your business would be liable for any injuries that occur during the visit.

Many home businesses are representatives of other companies (think Mary Kay) and offer product demonstrations at other people’s homes. This activity can expose your business to a great deal of liability, which is a great reason to have home business insurance.

Basic Coverage

There are two basic types of business coverage you should consider - liability coverage and property coverage. With a liability insurance for small business policy, you get protection, up to policy limits, anytime your company is found liable due to actions of it or its employees (you).

A property policy covers business equipment your company owns. Even though you have a home insurance policy, this coverage generally excludes business property, which means you need a business policy.

Most people working from home will have sufficient coverage with a basic liability and property policy. However, depending on what exactly you do working from home, you may need specialized coverage.

Specialized Coverage

In addition to basic home insurance coverage, you may need specialized protection, depending on your situation. A great example of this is a business car insurance policy. If you use a personal vehicle for business use, you will need business car coverage because your personal auto policy will normally exclude business use.

Another type of business coverage you might need is professional liability insurance if you provide professional services where a mistake can cause your clients financial damage.

Always consult with your business insurance agent to make sure you have the right type of coverage for the risks that your home business faces.

Obtain Home Business Insurance

While the best time to get the proper business insurance coverage is before you start a business, now is the second best time. The Internet has made it incredibly easy to get free small business insurance quotes so that you can find a provider that fits your needs.

Having the correct type and amount of business insurance coverage is something that everyone with a home business should be concerned about. The potential for financial disaster is tremendous if you choose to not be covered. There is too much at risk to roll the dice on this one, so get the home business insurance coverage you need today!