Nowadays, more and more people are choosing the option of working from home. Those who own small businesses often choose to run their companies from their homes, instead of going to the trouble of renting a commercial property. Not only does it save money, but it is also more convenient, giving owners the option to work whenever the need arises without having to leave home. This post provides crucial information on insuring your home-based business.
Why Should You Have Insurance for Your Home-Based Business?
Having the right type of insurance for your home-based business will ensure that your business and the equipment you use are fully protected if something happens to your home. It’s important to have separate coverage because your homeowners’ policy will not protect your business or its assets.
Different Types of Coverage
When you own a home-based business, you have a few options to choose from. If you don’t want to buy a business owners policy, you may be able to cover your company by choosing endorsements that can be added to your homeowners’ policy. Endorsements to your homeowners’ insurance will cover much less (usually $2,500 or less) for equipment that you keep at your home.
In-Home Business Policy
In-home business policies fill in the gaps between your homeowners policy and a business or commercial policy. It will cover your equipment, as well as any liability you may experience. It is structured more for your business and will ensure that your equipment is protected from various types of perils.
Business Owners’ Policy
A business owners’ policy will cover your business separately from your home and will provide liability coverage for any type of event that may be experienced. A business owners policy would cover your business just as if you were operating at an office or other location.
Other Types of Coverage Plans You May Consider
There are other types of business insurance you may want to consider as well. Coverage for your accounts receivable, any valuable papers you may keep, and the income you receive from your business are all options that will help you if an emergency arises.
Having commercial auto insurance is necessary if you use your vehicle to conduct your business. Your auto insurance policy may not cover your business assets if you are involved in an accident. With a commercial auto insurance policy, your business interests, as well as your personal interests, are protected.
Errors and Omissions (Professional) Liability
Anyone who provides a service that involves consulting or intellectual advice should have an errors and omissions policy to cover any liability they may experience in the course of their duties. If a mistake is made, this will cover any liability you may have to deal with.
Workers’ Compensation Insurance
Workers’ compensation insurance is mandatory in most states unless you are able to provide other coverage to take care of your employee’s medical expenses if an accident occurs. If you do not want to carry it for yourself, you don’t have to as long as you sign a waiver.
When you have questions about the insurance for your home-based business, you need to call the professionals. Contact our insurance professionals at J. Archer Insurance Group. We understand the need to protect your small business and can help you find a policy that works for you.