These days, millions of people run their businesses from the comfort of their own homes. If you are in this category of business owners, you need business insurance to protect you in case the unexpected happens. It is important that you understand the policies you need and why you need them. This ensures that you don’t run into any unpleasant surprises in the course of doing your business.
Business Property Insurance
You operate your business from home and you own the building. Don’t assume your homeowner’s policy covers your business because it doesn’t. Now, let us assume you run your home-based business with equipment like computers, printers, fax machines, scanners and even furniture. You need to insure these things against loss or damage. Relying on your homeowner’s insurance policy to protect the equipment you use in your home-based business would be a huge mistake.
Professional Liability Insurance
As long as you are a professional, you need this form of insurance. Like other professionals who commute to work daily, this policy covers you in cases of negligence or failure to deliver the goods ordered by your customers. In simple English, professional liability insurance protects you as a professional person and helps you cope in cases where mistakes might lead to litigation or a huge payment arising from your professional error of judgment.
Liability Insurance
If your clients and other visitors come over to your house for business, you need liability insurance. This form of insurance protects your business against damages caused to another person if the incident happened at your business premises. To make things clear, let us take a look at this scenario. You have someone making deliveries to your home. The person slips and falls while he or she is in your house making a delivery. In this case, your home business is culpable but your business liability insurance policy will protect you.
Product Liability Insurance
If your home business manufactures or supplies products, you definitely need a product liability coverage. This form of insurance protects your business in case the product you manufacture or supply causes damage to customers. In case you are not too sure how to go about this, you should talk to your insurance expert and this professional will give you expert advice.
Business Automobile Coverage
Now, you should not mistake your personal automobile insurance for the business automobile cover. Let us assume you run your business from home and you have a van to make deliveries to clients and pick up packages from your customers. You definitely need business automobile insurance coverage for this vehicle. This will provide protection in case you get involved in an accident or if your vehicle is damaged in the course of doing business with it.
Business Owner’s Insurance Policy
This policy is tailor-made for you if you run a home business. It covers things like inventory, office equipment, buildings and other related matters. The great thing about this policy is that it covers you in case a customer or a buyer makes a third-party claim against your business.
Workers’ Compensation Policy
If you employ people in your home business, you should consider taking out the workers’ compensation policy. This policy protects your employees in case some unexpected situations arise in the course of the business. For instance, if your workers lose their jobs due to some bad decisions you made in the business, these workers can sue you or the company for loss of income. However, a workers’ compensation insurance policy will help you cope with the lawsuit.
Now, you can see why business insurance for home-based outfits make a lot of sense. Find the right policy and you will be covered in case the unexpected happens.