It's one of those things that home-based business owners often never think about. Many home-based business owners assume that their home insurance policy also covers their business activities. The fact is the standard home insurance policy does not cover most home businesses. In addition to this, your home based business activities can void all coverage provided under your home insurance policy.
Home insurance policies provide coverage for residences, not places of business. Using your home for an activity that your insurance company is not aware of can potentially leave you with no coverage at all.
The type of home-based business insurance you will need really depends on the type of business you have.
For example:
* A graphic artist can easily have $20,000.00 in computer equipment and software in their home.
* People who sell products often take inventory and samples with them when visiting clients, along with cell phones and laptops.
* A customer could slip and fall during an appointment at a home based bookkeeping business.
* If you use your vehicle for business, then you'll need to make sure your auto policy covers your vehicle while being used for business purposes.
* A home-based manufacturer could be held liable if the manufactured product causes injury to a consumer.
* If your business provides a service, you may need professional liability insurance to protect your personal assets, pay defense costs and ensure that your customers are adequately taken care of should they suffer damages as a result of your services.
* If you provide services away from your home, at your customer's premises, you may need completed operations coverage to protect yourself from liability that could occur after you've left the premises and your customer begins to use whatever you were working on and injury or damage occurs.
Not all home based businesses are the same, and neither are their insurance needs.
Take a good look at your business and determine exactly what your insurance needs are. Decide a value on the inventory, equipment, and business contents in your home. How many customers come to your home? How would your business be affected if a disaster forced you out of your home?
Then talk to your insurance agent or broker about your business and get some good advice on what types of coverages you should consider for your business. Ask about home based business insurance packages. If you belong to a business organization or association see if they offer an insurance plan or get group discounts on insurance.
Try to get more than one quote so you can compare coverages and costs. Once your research is done, make a decision and purchase some business insurance. You're in business and you want to stay that way, so make sure you protect your assets and your customers.
About the Author
Liane Wood is a chartered insurance professional and registered insurance broker specializing in personal and small business insurance. Visit her website at: www.Insurance-Rates.ca.