Did you know that there are over 28 million home-based businesses in the United States today? 52% of all small businesses are home-based, and home-based companies generated over 7 billion dollars in sales in 2020. Do you own and operate a home-based business? If so, you will want to read this important article.
Just because you don't have a building or employees does not mean that you have the same risks as larger businesses. A home-based business has just about the same risks as any other business, including protecting client information, providing incorrect advice to clients, client lawsuits, product injury, client injuries while conducting business at your home, property losses, and even auto losses.
Some home-based businesses have risks that other businesses do not. What if you become ill or injured and can't perform your work? Who will step in? What if you die? Do you have a contingency plan?
Don't rely on your homeowner's insurance to cover your business. Most, if not all, homeowner's insurance policies will exclude your home-based business. The good news is that a home-based business insurance policy can cost as little as $150.00, depending on the revenue and the kind of business you have.
Some small company owners make the mistake of thinking that their homeowner's insurance protects their home-based business as well. That is not the case. If a delivery person slips on your front porch while delivering a business box, for example, your home's insurance is unlikely to cover the incident. In the same way, if a natural disaster struck your home, you'd need a backup plan for both your business and your family.
Here is a sample list of the coverages that you may need as part of your business owner's policy.
- General Liability Insurance
- Business Personal Property
- Cyber Liability
- Professional Liability
- Loss of Business Income
- Personal Advertising Injury
- Products and Completed Operations
- Health, Life & Disability
Remember that for some services or equipment, extra endorsements may be required, depending on the type of business. The independent agent should be aware of the policy limits and whether additional endorsements are required based on the type of business.
Insurance for small businesses provides protection and peace of mind in case of an injury, damage or lawsuit, and can protect important assets such as your home and family savings from being included in any litigation damages.