Operating a business from home can be great! There are benefits that come with that life that many dream of. However, one thing that many don’t consider- insurance needs. It’s ok though- we’ve got you covered! This is your guide to home-based business insurance- coverages and considerations.
It doesn’t matter if the home-based business is full-time or part-time. In either situation, business insurance is likely a requirement in your state. It’s important to note that a homeowner’s insurance policy is not enough coverage for many types of home-based businesses.
Here are some insurance considerations for your home-based business:
The type of business equipment and the worth of that equipment
If you’ll be employing staff/employees
The type of business you are operating
If there’s a business vehicle to insure
The kinds of risks the business faces
Protecting of personal/sensitive information
If people will visit the home business
Your insurance selection should be based on the type of business you run. Not all businesses are the same and therefore, policies and coverages can differ. Let’s say that you are operating a car detailing business from your garage, that business policy will need to be different than someone operating a resume writing business from their home.
There are multiple options when considering home-based business insurance. A few are similar to homeowner’s insurance coverage, but specifically designed for your business:
Business vehicle insurance: consider this if your business owns vehicles and/or, if your personal vehicle is primarily for business. Keep in mind that a personal auto policy will not cover business related incidents in many states.
Property insurance: this coverage protects the value of the home-based business property from loss due to theft, fire, or other insured accidents/incidents. Think- business equipment.
Workers Compensation Insurance: coverage and protection for employees hurt on the job. This coverage also provides wage replacement and medical benefits.
Liability insurance: coverage in the event that someone is injured as a result of visiting your business, using your product, and/or service.
These are just a few coverages and considerations to get you on the right, insured and protected path. There are a few more advanced protections that one may find beneficial, or even required for their business:
Business owner’s policy- a unique commercial policy made for small and medium-sized businesses that allows the bundling of general liability and property insurance.
Stand-alone home-based business insurance policy– this policy provides excess coverage according to its own terms and conditions.
Endorsements- these are amendments to an existing insurance policy, that allows changes to the terms/coverage of the original policy.
Navigating a home-based business insurance policy can be a little challenging but, we are here for you and happy to guide you through this exciting time- give us a call!
About Ryan Ruffcorn
Ryan grew up in Keokuk, graduated from Keokuk Senior High, and started his agency in Keokuk from scratch in 2003 after having worked for one of the largest international accounting firms, KPMG, LLP.
Ryan is hardworking; his loyal and trustworthy character is exemplified by the way he does business. He thoroughly enjoys helping clients through the insurance buying process to secure coverage for their most valuable assets.