Operating your business out of your home can be exciting and rewarding but can also be a nightmare if you aren’t adequately insured based on your business model. Many home-based entrepreneurs aren’t aware that their homeowners insurance will only cover a small portion of their business. There are many factors to consider when deciding on what kind of insurance coverage you need for your business.
What is your business model?
There are various business models entrepreneurs can run from their home, anywhere from internet-based businesses, on-site shops, home party sales, to bed and breakfasts, and childcare providers. Do customers or vendors come to your home for business-related activities? If so, you will need to ensure you have property and liability insurance for your business. This will cover your business if a customer gets hurt while on your property, protect against lawsuits, and protect against damage to your property.
Do you keep business property on-site at your home?
Business property not only includes the tools and systems used to conduct business, it also includes any inventory that you may keep in your home. If there is any chance that your business operations will be interrupted due to destroyed property from a disaster in your home (fire, flood, etc.), again, you will need property and liability insurance for your business. This will also protect against theft of business property.
Do you have any employees working for you?
If you answered yes to this question, you will also need workers’ compensation insurance for your business. It does not matter if you have only one employee. It is imperative that you make sure you are covered if that employee gets hurt at work or develops a work-related illness. Workers’ compensation will cover medical and rehabilitation expenses, as well as a portion of the employee’s lost wages. And, don’t underestimate what constitutes an injury at work. It could be something as simple as a strain from using office equipment to a serious injury like tripping on your sidewalk or stairs and causing major bodily harm.
Do you primarily use your personal vehicle for business-related activities?
Or, do you own a fleet of vehicles for your business? If you do, you will need business auto insurance. Your personal auto insurance will not cover an accident if you primarily use that vehicle for business-related operations.
Is your customers’ financial and/or personal information stored on your computer or cloud?
If you store your customers’ information electronically and don’t have cyber liability coverage, you are setting your business up for the potential to go under if you have a cyber breach. Cyber liability insurance can help protect your business if there is ever a data breach or computer attack. These specialized programs cover notification to customers, professional review of the situation, data restoration, PR services, and many more based on the coverage chosen.
Mutual Benefit Group offers all these types of insurances for business owners. Check out our Business Insurance pages to learn more on the options available to you through MBG.
Contact an independent agent today to discuss your insurance needs for your home-based business!