Many people run their businesses from home, and with the Covid pandemic, this number has increased. More than half of the businesses located in the country are run from their owners’ homes. This is proof that running a home-based business has a lot of advantages, and one of them is the lower level of risks involved.
The question is, do you need some insurance for your home-based business? Do you need to get coverage to protect it? And if you do, what is the best kind of insurance to get? This article will try to answer these questions.
Do You Need Commercial Insurance For Your Home-Based Business?
The short answer is an unequivocal yes! It is true that if you are running your business from home, it is probably still on a small scale, and you might not see the need to cover it. But your business still faces many of the same risks that larger businesses face. There is the risk of auto-crashes, damage to business property, etc.
And no, your home insurance will not cover claims from your home-based businesses. Many homeowners assume this, and it is wrong. Many insurance providers ensure that they include clauses in their contract that excludes these scenarios. These, and many other reasons, are why you should invest in a commercial insurance policy for your business.
What Insurance Plans Can You Get For Your Home-Based Business?
There are various options open to you, and the ones you get will depend on how big your business is. Your best bet would be to talk to a financial adviser or an insurance expert to advise you on the proper ones. Let’s look at some of the options you can choose from.
- Business Property Insurance
While your home insurance might cover your premises, other business properties are not covered and require special coverage; This plan will protect the equipment you use for the smooth running of your business.
- Liability Insurance
This is for the people who might be at risk of danger from interacting with your business. It protects your business from damages caused to someone while interacting with your business. Let us assume that a piece of equipment falls on a client during a meeting. You will need to sort out the damages. That is where liability insurance comes in.
- Business Automobile Coverage
Although this might not be necessary, it is good to have, especially if you use a vehicle for business purposes.
- Professional Liability
If you are a professional working from home, this coverage is necessary to protect you from any negligence claim your clients make. It also protects you from claims of omission from your clients.
- Products Liability
If your home-based business requires you to produce, design, or deliver a product, this plan will protect you from any liability the product might cause.
These are the basic, but insurance plans for your home-based business are not limited to these few. Depending on the scale of your business, there are other insurance plans that you might have to get. Talk to an expert or an insurance provider about your business’s risks and the plan or combination of plans best suited for your business.