Starting your own home-based business or simply being able to work from home is everyone's dream. Nonetheless, as convenient as it is, working from home carries some responsibility. Having the right equipment and resources to operate out of your home is one thing. You will also need to have the correct type of insurance in place to fill in the gaps that your homeowner's insurance may miss.
Here are a few of the most common questions related to home-based business insurance.
A homeowners insurance policy may exclude anything related to your home-based business. If, by chance, it does cover your business, it may be capped at $2,500 and only cover items that are part of the office. For example, it may cover your office supplies, but it will be excluded since your inventory is part of your business. Your homeowner's insurance will also deny any business-related liability claims.
If you know that your homeowner's insurance will not cover your home-based business, you will need to protect your business interest somehow. Buying a commercial insurance policy will protect your business and provide you with liability coverage. If you travel for business, having a business owner's policy will protect you whether you are at home or away. It will also ensure that more than just your office supplies are covered.
There are several ways to obtain insurance for your home-based business. First, you can purchase an endorsement to go along with your homeowner's policy. This will extend your coverage and may even double it. If this isn't an option, you will have to buy a commercial insurance policy. A business owner's or commercial policy will ensure that you are covered in several ways, including liability coverage. Business owners' policies go the extra mile no matter where your business is.
No matter what type of business you have, there is a need for protection against financial loss. Whether you deal with intellectual property, sales, or design, you will always face some level of risk, especially in terms of liability coverage. The fact that you are being paid for a service means that a transaction has taken place, and you are at least partially responsible for the outcome. An insurance policy ensures that your financial responsibilities are met without harming your business.
A home-based business insurance policy will vary in price depending on what types of coverage you will need. For example, are you insuring a dwelling, equipment, inventory, or a combination of all? Do you need liability coverage? Are you interested in an umbrella policy? All of these questions will determine the overall cost of your policy. Your agent will help you determine how much coverage you will need for each type of insurance.
When you own and operate a home-based business, it is up to you to take care of all the little details. This includes your company's business insurance. Call our agents at C.V. Mason Insurance Agency at your earliest convenience. We can guide you through the process of buying the best policy for your home-based business.