Sometimes it seems, as a small business owner, you may never achieve your loftiest goals. Remember, however, that any number of today’s big businesses (Apple computers, Amazon, and more) started out in somebody’s garage, their mom’s basement, etc. In fact, to build a business from scratch, you don’t even need a garage!
What all entrepreneurs do need, however, if they’re planning on owning a business in their residence, is the right kind of coverage for home-based business situations.
Home-Based Businesses – What Are They?
Let’s clear something up right off the bat. If you’re working from home as an employee, but there is a different location for the main office of the company for which you work, this is not considered a home-based business. You have to be your own boss for it to be a home-based business. The company is owned by you and the location of that business/company is none other than your house. Home may be where the heart is, but in this situation, it’s also the location of your business.
Do Home-Based Businesses Need Insurance?
The quick and simple answer to that subtitle question is, “Yes!”
There are several reasons to make sure you have business insurance. If a claim is made against your business, to cover the costs that may arise, business insurance is a must. To protect your business, but before you make the decision to purchase a policy, consider the following reasons for acquiring business insurance:
- Because, in your home, you are keeping the records of clients and customers.
- Because, to your home, you may have clients and customers visiting.
- Because, in your home, you may have employees working.
- Because, in your home, you are now keeping any business supplies and/or inventory.
If even one of those just-listed considerations applies to your home business, you need insurance.
Home Business Insurance Policies
The size of your business can be a determining factor in the type of insurance you decide to choose.
As an example, however, you may consider an extremely affordable policy if you’re a small business owner. Here are some insurance policy options:
- To provide general liability and property coverage where your business operates, you might consider a standard BOP (Business Owners Policy). To help with your lost income, this type of insurance policy would be helpful if, for example, an unforeseen fire damaged/destroyed your surroundings.
- According to your state, workers’ compensation laws differ. As a business owner, do yourself a favor and research the regulations, stipulations, provisions, etc. in your state. It may be an absolute requirement for you to have workers’ compensation insurance.
- General liability will help cover business-located falls and slips by customers who may try to sue you. To cover any potential lawsuits, it’s also a good idea to have general liability insurance if – for marketing or advertising – you unintentionally used the idea of a third party.
- If you run your business from your home as an independent contractor, the purchase of inland marine insurance (also referred to as course of construction coverage and/or builder’s risk insurance) should be considered. This can be used to protect data (possibly stored in your home, car, or truck), equipment and materials, day-to-day tools, etc. This kind of insurance can help cover damages and/or losses that occur while transporting your goods, as well.
For Assistance with Home Business Insurance Claims – Contact Stone Claims Group
Maximize your claim recovery with Stone Claims Group. Our areas of expertise extend to umpire services (to help settle claim disputes), public adjusting, preliminary inspections, appraisal services, and more. Let us handle the headaches.
Feel free to check out our FAQ page for answers to some of the most common questions.