Running a small business out of your home can be a dream come true for many people. Working from home eliminates a lot of expenses, and it can also help you save a lot of time. If you are about to start a business from your house, there is one thing you should think about though: insurance. A home-based business has the need for insurance, but the types you need may vary. Here are some types of insurance products that many home-based business owners purchase for protection.
Business Contents Insurance
The home you live in and operate your business out of probably has insurance on it. This insurance probably covers the entire structure as well as most or all of the things you own, but does it cover the things your business owns?
For example, does your business have electronics, such as a computer or printer? Do you have inventory on hand? Does your business own any other types of assets? If your business has assets, your home insurance policy probably does not cover these items. If you are not sure about this, you could contact your home insurance company and ask them.
If you find out that your policy does not cover your business assets, you could purchase business contents insurance. This is a type of rider you can add to an existing home insurance policy, and its main benefit is that it protects everything your business owns and keeps in your home or car.
While you probably also have car insurance for your vehicles, you should ask your agent if your plan covers your car if you are using it for business purposes. In most cases, regular car insurance does not cover incidents that happen when they are related to an at-home business. If this is the case, you will need to add coverage to the vehicle you use for work so that it is completely covered no matter what your reason is for using it.
Business Interruption Insurance
A lot of people do not realize just how important business interruption insurance is until they need it. This type of insurance protects you against losses you would experience from your business if you could not operate out of your home due to a major disaster. For example, imagine if a fire destroyed your home and you could not work for the next few months. How would you stay afloat if you could not run your business? If you had business interruption coverage, you would at least have some money coming in from your policy.
One other type of insurance product you should consider purchasing is called cyber insurance coverage. Cyber insurance is absolutely necessary for almost any type of business that uses computers. The main purpose of cyber insurance is protection against data breach. If someone hacks into your system and steal information, people could sue you. You could also lose business, and competitors could steal business from you.
Protecting your business with cyber coverage is vital in today's world, and you should consider getting this type of coverage if you operate an at-home business. A data breach can cost thousands of dollars or more, and it is not a risk you should be willing to take with your business.
One of the best ways to make sure your home business is fully covered is by contacting a business insurance agency. An agent can ask you questions about your business that will help determine what types of coverage your business needs. Once you know your needs, you can determine what types of coverage you would like to have for your home business.