Home Based Business Insurance

 

HOME BASED BUSINESS INSURANCE

Home-based business insurance is often overlooked. Many home-based business owners own their own homes, and assume that their home insurance also covers their home-based business activities.

Not only is this not true, but your home-based business activities can void your home insurance. Home insurance covers people’s homes. Using the home for other purposes that your insurer is not aware of, such as operating a home-based business, may invalidate your policy.

What kinds of home-based business insurance do you need? The answer depends very much on exactly what kind of home-based business you’re operating.

General Liability Insurance

If your aunt is visiting and falls and breaks her leg, your homeowner’s policy will cover it; if a client is visiting and falls and breaks her leg, it won’t. General liability insurance covers injuries to clients and employees on your business premises and elsewhere.

Product Liability Insurance

Does your home-based business involve selling a product? Then you should consider getting product liability insurance to protect your business from liability resulting from the product’s non-performance.

Contents Insurance

Business equipment will only be covered by your homeowner’s policy while it is on your premises. If you have a laptop computer or a PDA that you use outside of your home, you’ll need separate contents and property insurance for it.

Professional Liability Insurance

Professional liability insurance protects both you and your clients. If a client claims to have suffered damages through your actions as a professional, your professional liability insurance will shield your personal assets and pay for your defense against such a claim.

Vehicle Insurance

Do you use your vehicle for business purposes? If so, you need to have your vehicle properly insured for business use to cover any damage to your vehicle and to cover your liability to others if you’re involved in an accident.

Options...

How can you save money on home-based business insurance? Prioritize your home-based business insurance needs to help determine what insurance options fit your home-based business.

LOOK FOR HOME-BASED BUSINESS INSURANCE PACKAGES

Many insurance companies offer business insurance “packages” now that bundle types of insurance together. For instance, (just to name one), State Farm Insurance offers a Business In The Home Program which combines Property, Liability, Loss of Income and Records insurance policies. You save money by paying one premium rather than paying the premiums on different types of insurance separately.

Take advantage of group rates by purchasing your insurance through a professional or business organization.

Many different business organizations offer insurance plans and/or discounts on business insurance to their members. The bigger the group, the more diffuse the risk and the lower the insurance rates are. You will have to pay to become a member of the group or association, of course, but you could still end up saving money compared to the cost of purchasing the same kind of business insurance the group offers on your own.

There are professional organizations for every business occupation from computer consultants through veterinarians. General business organizations, such as your local Chamber of Commerce, The Better Business Bureau and SOHO, also offer business insurance discounts. Your local Home-Based Business Association may also offer members lower prices on home-based business insurance; if not, it will certainly be able to provide you with some good leads.

TALK TO YOUR HOME INSURANCE AGENT

Most companies that offer home insurance will provide additional insurance for home-based businesses by adding a rider to your existing home insurance policy. (If you go this route, however, be sure that the rider includes all the types of insurance your home-based business needs, because these riders generally exclude product liability, disability insurance, or professional liability insurance.)

COMPARE, COMPARE, COMPARE…

Before purchasing any business insurance, do your homework and get quotes from several different companies. The first deal you hear may not be the best deal. Start with investigating professional and/or business groups related to your home-based business activities and their insurance benefits because these groups offer other benefits as well, and then approach several different insurance agents to see how much such insurance would cost you as a “private” person.

When your research is done, bite the bullet and get the home-based business insurance you need. It will seem expensive, no matter how good a deal you get. But the cost of not having home-based business insurance could be so much higher.

OTHER PERSONAL COVERAGES INSURANCE LINKS

Wedding

Wedding insurance covers most everything couples need for their big day from photography to clothing to cakes.

Valuable Items Insurance

Are your most valuable possessions protected from loss? Your possessions are worth a lot to you, especially certain ones that reflect your personal interests and taste.

Identity Theft Protection

Most experts agree that even if you take all the right precautions, you may not be able to prevent identity theft from happening - in part because your personal information is not always in your control.

Home Based Business Insurance

Home-based business insurance is often overlooked. Many home-based business owners own their own homes, and assume that their home insurance also covers their home-based business activities.

Beyond Insurance.

Frequently people go for years without reviewing their insurance program, even though life quickly changes. By answering a few questions, you can have the peace of mind knowing that your family and possessions are protected.