Starting a home-based business can be a great way to achieve financial independence and work on your own terms. However, it’s important to remember that running a business from your home also comes with its own set of risks and liabilities.
That’s why it’s crucial for home-based business owners to have the right insurance coverage in place to protect themselves, their businesses and their assets.
If you own your home, you obviously need homeowner’s insurance. But many people who operate home-based businesses don’t realize that their homeowner’s policy won’t cover business-related liability or property claims, unless the proper endorsement is attached.
For most home-based businesses, we recommend a separate, more comprehensive Businessowners Policy (BOP). Depending on the nature of your home-based business, here are some of the coverages that you may need:
General Liability
General liability insurance covers any legal liabilities or damages that may arise from accidents or injuries on your business property. This is especially important for home-based businesses that have clients or customers visiting their homes.
Business Interruption Insurance
If a natural disaster or other event disrupts your operations for an extended period of time, business interruption insurance can help cover lost income and expenses during the downtime.
Professional Liability Insurance
If you provide professional services, such as consulting or coaching, it’s a good idea to have professional liability insurance. This type of insurance, also known as errors and omissions insurance, covers any legal liabilities or damages that may arise from mistakes or oversights in your professional services.
Product Liability Insurance
If you sell products as part of your home-based business, product liability insurance protects against any legal liabilities or damages that may arise from a defective product.
Workers' Compensation Insurance
If you have employees working for your home-based business, you’ll need workers’ compensation insurance to cover any injuries or illnesses they may sustain on the job.
Running a home-based business comes with its own set of challenges and risks, but with the right insurance coverage and risk management strategies in place, you can protect your business and give yourself peace of mind.
We get to know the ins and outs of our customers’ businesses, so we can identify and recommend the most relevant policies and the right level of coverage.