Do you run a business out of your home? If you do, then YES, you need home-based business insurance. It’s that simple. Before you even ask, no, your homeowners policy will not, and does not, cover your business – nope, not even your computer.
The days of requiring a brick and mortar office to run a business are gone. Many successful businesses are run from home offices, and many Fortune 500 companies started that way. Many small-business owners mistakenly assume that since their business is home-based, their homeowners insurance policy will cover loss to inventory or equipment. That’s just not true. If you purchased items through your business, and something happens in your home that causes those items to be damaged or destroyed, you’ll need a separate business policy to ensure replacement or repair.
Furthermore, covering material goods is only part of the equation. Working from home, and the fact your business is small, does not protect you from a lawsuit. What if a client, or even a delivery person, trips on your front porch and is injured? If they bring a claim against you, and they were at your home for reasons related to your business, your homeowners insurance policy won’t help.
What do you do in your business? What risks come along with that? This is where your commercial insurance broker comes in. In the event your work leads a client down a path that ultimately gets them into trouble, they may come back and fault you. If your product caused injury to someone or didn’t work as advertised, even if you didn’t manufacture it, you’ll likely be included in any legal proceedings. What if your words about a client painted them in a bad light or your lack of cyber security exposed a secret? Again, this could come back to haunt you. In these scenarios, and other like them, you would want an errors and omissions or other type of commercial insurance policy in place (depending on your line of work).
We understand every business is different. That’s why it’s important to speak with your insurance broker or agent and determine what policy types and coverage amounts are necessary to protect your business. Regardless, YOU DO NEED more than just a homeowners insurance policy to cover your small business, but you may not need a big fancy insurance policy that eats away at your profit. A good agent can find you a policy that offers protection and fits the needs of your business today. As your business grows, your policies can too.
Oh, and if you travel to meet with clients or do presentations, you may need to discuss a business auto policy as well, even if your car is technically a personal vehicle.