Starting a Business From Home and Need Insurance?
Are you thinking of starting a business from home? There are many upsides to this pursuit. However, you should consider all the things you need in order to operate a home-based business.
This includes finding coverage for your at-home business. There are many liabilities that homeowner’s or renter’s insurance do not typically cover when it comes to running a business from your home.
If you need to find insurance for your home-based business, keep reading our step-by-step guide on how to get started and learn how to get coverage for your at-home business.
Determine Your Business Type
The first step to starting any business is to determine what type of business you want to own. If you do not already own a business, you may want to consider what interests and skills you have as a starting point for brainstorming business ideas to operate from your home.
Create a Business Plan
Once you have determined what type of business you would like to run from your home, you should create a business plan. A business plan can help cultivate your business idea by thinking through the potential growth and progression of your home business.
A business plan should include:
- An executive summary of the business
- Description of your target market or ideal customer
- Analysis of your competition
- Marketing strategy and sales plan
- Financial plan and projections
Having a business plan could also help you secure funding from investors or lenders in the future by showing you have thought about the characteristics and potential risks of your business.
Follow Business Regulations
Your state and the federal government have laws and regulations regarding businesses. Even with a home-based business, you want to make sure you follow all the mandatory requirements.
Register Your Home Business
Depending on the structure of your business some states may require you to register your business. If you own an LLC or corporation, it most likely a legal requirement for operating a business from your home. Each state has its own process for completing the registration of a business, so it is best to check with the state your business will operate in to ensure you are following the correct process and procedures.
Business License and Permits
Licenses and permits will vary based on the state and city your business will be located in. A home-based business may also have different requirements than other types of businesses. You may be required to acquire a home occupation permit which allows you to operate a business from your home or other licenses based on your profession or industry of the business.
It is recommended to always check with your local and state governments on business requirements. They may be able to help you navigate the necessary steps.
Get a Business Insurance Policy
If you are starting a business from home, you should consider a home business insurance policy. HomeHQSM by PolicySweet® is coverage specifically intended for home-based businesses. HomeHQ consists of multiple coverages, including:
- General liability insurance
- Business property insurance
You should think about purchasing this policy if you have tools or equipment for your home business that needs to be protected.
If your business involves customers visiting your home business, then you may also want a home business insurance policy. This may protect you against bodily injury, associated medical costs and injury lawsuit claims filed against the business.
Starting a business from home means taking the steps to help ensure its success. Obtaining business insurance can help to protect your business from potential accidents and risks.
Update Your Insurance Company of Any Changes
It is important to update your insurer or insurance company about any changes to your business model, even with a home-based business.
If your business grows faster than you expected it to, then you will want to relay this information to your insurer. The same goes for the opposite: if your business sales start to plummet, then you will want to update them as well.
This is to make sure that you are still using the appropriate insurance for the home business you have. It could help to protect you in the long run.
Insurance for Starting a Business at Home
Starting a business at home, especially a new business, is not easy. There are ups and downs. Ultimately, you can do it!
Making sure you have the coverage you need to help protect your home-based business is one of the most important steps. Get a quote today so we can get started on getting your business insured!
