Why You Need Home-Based Business Insurance Protection
Did you know that there are 28.8 million small businesses in America and half of them are home-based businesses? If you are one of the people undertaking the challenge of running a home business, one of the most important things to consider is an insurance policy.
For most businesses that have operate from a residential address, home-based business insurance is one of the best types of coverage to consider. But what is home business insurance, and do you really need it? Let us look at this type of coverage a bit closer to see if it is the right choice for your business.
What Is Home-Based Business Insurance?
If you run your business from your home, you may want an insurance policy that can cover business property damage, injuries related to the business, and even lawsuits.
Many times, business owners rely on their home insurance policy to cover these risks, but a home insurance policy is generally not enough.
A standard home insurance policy might not cover your business property. That means if an incident occurs at your home and business assets are destroyed, the insurer could refuse to reimburse you for business related items.
A home-based small business insurance policy will usually cover damage to business property up to a certain amount agreed upon in your policy. There are a few different coverage options you might want to consider for your home-based business.
For people who have clients or business associates coming into their home for business reasons, liability insurance can be a necessity. If someone gets injured or their property suffers damage while at your home business location, liability insurance could help cover expenses related to the damage.
Business Property Insurance
If you use equipment of any sort to run your home-based small business, you might need business property insurance. It can cover fax machines, telephones, and much more. This coverage could help to protect you from damage or loss of the equipment you might need to run your day-to-day operations.
Inventory insurance can be beneficial for home businesses that store goods and items to later sell as merchandise. In the event of a covered loss, you could be reimbursed for the cost to replace lost or damaged inventory. This type of coverage is critical for businesses that rely on storing products at their home.
At PolicySweet®, we have combined all three types of coverages into one policy we call HomeHQSM. It allows you to get the coverage you need for your home business without having to purchase each one individually.
This policy is a great option for businesses that primarily operate from a residential space, as it can help reduce the impact of several risks home businesses face.
Do You Need Home-Based Business Insurance?
Deciding on whether you need a home-based insurance policy can come down to a few crucial questions. Here is what to ask:
- Do clients come to your home?
- Do you have inventory or supplies on the property?
- Do you own or rent expensive business equipment?
If you answered yes to any of these questions, you might want to have home business insurance. Your home's liability insurance will likely not offer enough coverage.
If you have clients stopping by your home for business, then you might not want to take the risk of them getting injured on your property. Without the right insurance coverage, your business could be liable for medical bills and even legal claims made by the injured party.
If you have specific equipment, you might want to be sure you it is covered, as well. A home-based business insurance policy could help cover that.
Without the right coverage, your business could face many legal challenges and you could be responsible for paying lawsuits, property replacement, and other costs for unexpected business issues.
Some businesses that can benefit from home-based insurance coverage are:
- Clothing retail and manufacturers
- Data entry services
- Food services
- Freelance writers
- Graphic design services
- Hairdressers and barbers
- Language instruction
- Music lessons
- Pet walking and sitting
- And much more
If you own a home business, you should find an insurance policy that can help protect you from unexpected incidents. If you are ready to get the protection you need, we can help.
Get “Peace of Mind”
When you purchase home-based business insurance, you might be giving yourself the tranquility you need to run your business effectively and without fear. Running a small business is always a challenge, especially out of your home, but the right insurance policies can help allow you to focus on what really matters: growing your business.
At PolicySweet, we can help you get the coverage your business needs. Contact us today to speak with a representative about HomeHQ!