Recent trends have seen home-based businesses on the rise. It is tempting to start a business from your home. It’s easy to get to work, and you can have an office in seconds. Although there are many benefits to having a home-based business, insurance can be a problem. Many home-based business owners assume that their homeowners policy will cover them in case of an emergency. This assumption is only half true.
Your homeowners policy will only cover damage to the property. It won’t cover injuries sustained by customers or employees. Additional insurance is essential for home-based businesses. It is now possible to get security from an Internet-based insurance company by focusing on home-based businesses or Information Technology businesses.
Types Insurance You Can Get for Your Home-Based Business
A BOP (Businessowner’s Policy) can be a package of business insurance that is popular among small- and medium-sized business owners. Although a BOP may provide coverage for most risks associated with home-based businesses, many agents and business owners advise that you purchase separate insurance in addition to a BOP. A BOP typically includes:
General Liability – You should have some type of general liability insurance, regardless of whether you buy a BOP. It is essential to have insurance in place in the event that customers, delivery staff, or anyone else associated with your business will be visiting your home. General liability insurance will provide coverage in the unfortunate event that someone gets hurt while they are on your premises.
Property Insurance – This insurance is also included in your BOP. It covers any injuries or damages to your property. If there is theft or an accident, the contents of your house (or home) are covered.
Business Interruption: This pays you compensation for profits lost or cost incurred due to the building where you work being declared unusable. The insurance company will pay any possible profits and sometimes even cover the cost of a substitute workplace if your home was damaged by a fire.
The BOP covers many claims, but there are some other coverages you may want for your home-based business.
Workers’ Compensation – This is essential if you have employees who work from your home. Workers compensation covers medical expenses resulting from injuries sustained by an employee at your house. The time the employee is away from work and the salary he would have earned are also covered.
Professional Liability Insurance – This type of insurance is separate from general liability insurance. It covers any claim a client may have based on negligence or failure on your behalf. If a customer feels that the job or service they received was not up to standard or that there was any damage done, they can file a claim against your company. This is commonly referred to as errors and/or omissions insurance.
Umbrella liability – Umbrella coverage provides additional coverage when your other liability insurance has exhausted its limits. This insurance acts as additional security and provides more protection.
There are many other things to consider
You have a few other options when it comes down to insuring your home-based business. A homeowner’s endorsement can be added to your policy, which will increase the equipment protection for a small monthly charge. They are often available to businesses that have a small annual income.
An in-home business policy is another option. These policies can be purchased from many Internet insurance companies and include general liability. In home insurance policies will provide coverage for any losses of income or additional expenses that may occur if there is a fire, flood, or other disaster.
When you start a home-based company, health insurance is another important insurance that you need to be aware of. You will not be covered by the insurance company that you previously worked for, so it is vital to have a plan in place for your employees and yourself.
Cost of Insurance
Your business could be saved by creating a standard insurance policy for your home-based business that includes some type of general liability insurance. One lawsuit or claim can put your company and personal assets at risk. Small business owners may overlook the importance of insurance due the high cost. A lack of insurance could lead to a loss in business and even financial ruin.
It can be hard to find the right insurance coverage for your IT company. Talk to an Internet-based insurance company to determine which type of insurance is best for you.