Run a home business and don’t need insurance? Think again. Regardless of your location, your business should be insured. It’s your asset and supposed to make you money, don’t let it cost you and ruin your chances of a profitable venture due to an unexpected accident.
Just because you have home insurance it doesn’t mean that it’s going to cover your business as well. Make sure that your home insurance provider is aware that you are running a home based business and that your policy does not become void because of this. When it comes to insurance it’s better to be safe than sorry.
A home based business should consider contents insurance, general liability insurance, health & life insurance, and workers compensation insurance.
Contents insurance is required to cover the contents of your business which your home insurance will not cover. Your business inventory, equipment, tools, office furniture and computer equipment need to be covered in case of fire, storm or theft.
General liability insurance is required to keep you protected in case of an unexpected accident where a client or employee who comes to your home is injured. You don’t want to be forking money out from your own pocket when an accident happens, and accidents do happen. General liability insurance is going to protect you in case this happens. This will pay for any legalities and other costs incurred.
Health insurance is important for most people, but more so if you run your own home based business. Investment in your health is the most important investment you will make, and you should have insurance to cover it. With health insurance you should also consider life and disability insurance in case something terrible happens. This will not only protect you and your business, it will protect your family so that they don’t have to cover any costs from their own pockets.
If you plan to hire employees for your home based business you will need workers compensation insurance. This type of insurance will cover any medical expenses incurred which would normally be paid by you if one of your employees had an accident during work hours and while working for you.
Before deciding on the type of insurance you will need consider the type of business you are running. Not all types of insurance are going to be necessary for you. Take out what you really need and see whether you can get a combination of insurances as one in order to save on expenses. Talk to numerous insurance providers for the best deal and read the fine print carefully so that you are completely aware what you are covered for and what you’re not covered for. Obtain a few quotes and compare policies, there’s no point in taking up the first offer, as you might be able to get a better deal elsewhere, not just from a financial point of view but also for the policy. Make sure that your business insurance covers most of the types of insurance mentioned above to be fully protected against any unexpected accidents.