A growing number of entrepreneurs run their businesses from the comfort of their home. If you’re a home-based business owner, you may be wondering if you still need business insurance. It’s important to know that neither homeowners’ or renters’ insurance policies cover home-based businesses. As a result, you may need additional business insurance.
How To Decide If You Need Home-Based Business Insurance
You will need home-based business insurance if:
– Customers or clients visit your home.
– You keep inventory or supplies in your home.
– You have employees, either working in or outside of your home.
– You maintain client or employee records on your computer.
Without the right coverage, your business could be held responsible for costs related to property damage, lawsuit, employee injuries, and other accidents. Additionally, you should always make your home insurers aware of your at-home business activities. Otherwise, they may nullify your homeowner’s personal liability coverage.
Types of Home-Based Business Insurance
The type of coverage you need for your home-based business will depend on your industry, the size of your company and how many employees you have, among other factors. Some types of home-based business insurance include:
Business Property Insurance – Business property insurance covers property and equipment used to run your home-based business in the event of an accident such as a fire or flood.
Liability Insurance – If you have clients visit your house for business purposes, liability insurance protects you from being held liable for property damages or injuries.
Professional Liability – Professional liability protects you against claims of potential negligence made by your clients.
Product Liability Coverage – If you make and sell a product, product liability coverage protects you in the event that your product causes damage to property or a person.
Depending on your business, other home-based business insurance coverage you may want to consider include business auto, commercial crime, and workers compensation.
CTG: Personalized Business Insurance Solutions
The right business insurance can make or break your business. CTG offers personalized insurance solutions tailored to your unique needs, risk level, and budget. We make the insurance buying process simple and accessible to all. Get started by scheduling a phone call, virtual, or in-person meeting with one of our experienced insurance advisors.