No matter how big your business is you should have insurance to protect it and yourself from the unexpected. This includes home-based businesses. So whether you’re a freelance designer, consultant, or own some other business you work from home doing, you should make sure you are covered for the unique risks your business presents. Here are a few types of insurances needed for many home-based businesses.
General Liability Insurance
You’ll need general liability insurance if people visit your home for business purposes or if someone uses your product or service. This will pay for any bodily injuries or property damage by a third-party and will protect you if your product injures someone. It will also pay for your legal defense if you are sued for slander or copyright claims.
Property Insurance
Whether you work from home or not, you will need insurance on your home. You can cover the unique risks that a home-based business presents in a variety of ways. If you have a very low-risk business, many times your current homeowners policy will be sufficient. However, for businesses that offer a little more risk, you’ll need more coverage.
You can accomplish this by adding an endorsement to your current homeowners policy, by getting a separate home-based business insurance policy, or it may be included in your Small Business Owners Policy (BOP). You’ll want to talk with your insurance agent to determine what’s the best approach for your business.
Business Vehicle Insurance
If you use your personal vehicle for a large amount of business use, you will need to get a commercial auto insurance policy because it would not be covered under your personal policy. However, if you just use your vehicle for the occasional meeting your personal policy should suffice.
Having the right policies in place to protect you and your home is important for any home-based business. While these are common policies used for home-based businesses, your business may be more suited for a different combination of policies. Therefore, it’s important to talk with your insurance agent to evaluate your unique needs.
