Safeguard Your Home-Based Business
The Power of Home-Based Business Insurance
With over 33 million small businesses in the U.S., and half of them being home-based, entrepreneurs are thriving in diverse industries like accounting, artistry, catering, cleaning, and more. However, amidst the excitement of starting your own venture, many new business owners may overlook the potential risks they face. To secure your entrepreneurial journey and protect your business from financial disasters, it's crucial to invest in the right type of home-based business insurance.
Understanding Home-Based Business Insurance
Running a company from your home or property exposes you to various risks, such as property damage, injuries, employee incidents, and lawsuits. While some entrepreneurs rely on their homeowners' insurance, these policies may not provide sufficient coverage for your business needs. For instance, standard home insurance often has limitations on business property coverage, such as a $2,500 limit, which may not be enough for some businesses.
Types of Home-Based Businesses That May Need Insurance
You might assume that insurance isn't necessary for your particular business, but certain home-based businesses could greatly benefit from proper coverage. Examples of such businesses include accountants, web design firms, photographers, online goods sales, and caterers.
How to Buy Home-Based Business Insurance
To ensure adequate coverage, consider two main options: adding an endorsement to your homeowners' insurance or purchasing a standalone business insurance policy. Endorsements offer additional coverage for smaller operations, while standalone policies provide more robust protection and higher coverage limits. For instance, a business owners policy (BOP) combines essential coverage types like general liability, commercial property, and business interruption insurance.
Types of Home-Based Business Coverage
A business owners policy (BOP) is an excellent choice for home-based businesses, bundling together three crucial coverage types: general liability insurance, commercial property insurance, and business interruption insurance. This comprehensive approach offers convenience and cost-effectiveness compared to buying individual policies.
Other Specialized Insurance Options
Depending on your business type, specialized coverage options may be necessary. For example, commercial umbrella insurance extends your liability coverage beyond the limits of your primary policies, safeguarding you from significant financial burdens. Cyber liability insurance is essential in today's digital age, protecting your business from cyberattacks and data breaches. Employment practices liability insurance covers settlements and legal defense costs in case employees bring claims against your company.
Determining the Cost of Home-Based Business Insurance
The cost of a business owners policy (BOP) is minimal, typically somewhere around $60 per month. However, the exact cost varies based on several factors such as the type of business, coverage types, number of employees, location, and coverage limits.
Do You Need Home-Based Business Insurance?
Before deciding on insurance, consider key aspects of your business to assess its vulnerability to risks. Determine your unique risks, the number of employees, whether clients visit your property, the need for vehicles, and the storage of client information. Home-based business insurance is highly recommended even for the simplest business pursuits.
If you’re still not sure, our agents will be happy to explain the different options that you have.
Conclusion
As a proud business owner, securing your home-based business with the right insurance is essential to safeguard your hard work and investments. Don't let unforeseen events jeopardize your success.
Connect with our experienced insurance agents, who will help you find the perfect home-based business insurance to protect your business against financial hardships.
Sources:
The State of Small Business in America | U.S. Chamber of Commerce
What is covered by standard homeowners insurance? | III
Business Owner Policy (BOP): Definition, Coverage, Exclusions | Investopedia