Running a business from home comes with a number of insurance considerations. Even if your business is a small one or barely more than a hobby, you'll have to figure out what type of insurance you will need for it. Here is what you should know about insurance for your home business.
Check with Your Home Insurance Carrier
The first thing you should do is check what your home insurance carrier covers. Many home insurance carriers won't cover eventualities related to your business.
For example, your home insurance can cover your personal property in case of theft or burglary. However, if the theft involves the part of your home you use for business or your business equipment, your insurer may not cover it.
Sometimes, running a business from home without telling your insurer can void your policy. This isn't all true for all types of home insurance. To make sure, contact your insurer and read over your policy carefully.
Your insurer may even have some form of coverage for your business available as well. If you're looking for new home insurance coverage, start with an insurer that also offers some protection for your business endeavors.
Look Into the Different Types of Commercial Insurance
Commercial insurance exists independently of other types of insurance. Commercial options can protect you in several ways.
For example, consider if someone hurts themselves on your property while picking up something you sell. Commercial insurance will kick in with liability coverage. Normally, your home insurance will take care of liability and medical bills, but they may not if business activity was involved.
Commercial insurance becomes even more important if your home business is a large part of your livelihood. If you lose your business equipment, or a fire destroys your product, you're on your own. You can lose current and future income. Commercial insurance can help mitigate those potential problems.
You'll find many different commercial insurance options out there. You should choose one that best reflects the nature of your home business. The most basic form or commercial insurance is the "business owner's policy," or BOP. A BOP can cover:
- Coverage for your business property
- Coverage for an interruption to your business or loss of income
- Liability coverage
For many small or home businesses, this basic coverage is often all you need. If your business grows, or you involve things like employees or vehicles, you will need something more robust.
No matter what, if you have any business activities, look into insurance options that can help you. If you use your car for any business purposes, you should look into having those activities covered along with your auto insurance. Speak to an insurance carrier about your normal and home business needs.