Top 7 Insurance Policies for Home-Based Businesses

Home based businesses are becoming more and more popular in today’s world and it’s a great accomplishment to successfully run one. While you may be great at running your business there are still things that can occur that are out of your control, which is why having the right business insurance policies in place is necessary in order to add a layer of protection to all your hard work.

A business insurance policy can help protect you against many of the common threats at-home business owners face. What happens if a client is trips and injures themselves on your property? Or if a someone breaks in and steals your computer? These are questions you need to know the answers to as an owner of a home-based business.

Here are 7 types of coverage for your home-based business:

1. Business property coverage: This protects items such as computers, signs, merchandise and other business-related property against certain instances of loss.
2. General liability coverage: This protects you in case someone files a lawsuit against your business due to an accident, an injury or a claim of negligence.
3. Data compromise coverage: Hackers are beginning to target small businesses on a regular basis and such an attacks can result in customers’ or employees’ data being stolen from your computers. This type of coverage can help you recover from such a situation.
4. Employment practices liability coverage: If you hire an employee, this type of coverage protects you if you ever face allegations of wrongful termination or other employment risks.
5. Business interruption coverage: This provides business income in the event your home-based business is interrupted by a “covered loss,” such as a fire or a tornado.
6. Rider to a homeowners or renters insurance policy: This low-cost option typically provides limited additional coverage. It may offer protection for a small amount of business equipment and liability coverage if a third-party, such as a delivery person, is injured in your home. This may be a good fit for a one-person operation with limited liability exposure, a small amount of business equipment and no business deliveries or visitors coming to your home.
7. Business owner’s policy (BOP): This type of policy provides the most comprehensive coverage for home-based companies. It protects against unexpected business interruption, damage to business equipment or data, and malpractice or professional liability claims. Businesses that manufacture or stock products, conduct business inside and outside the home or cat a high risk for professional liability may want to consider a business owner’s policy.

Protect Your Hard Work

Check with your insurance agent to see what policies make the most sense for your business. Running your own business takes on a lot of risk, which is why it’s important to make sure you have the right insurance policies in place to avoid any setbacks to your success. If you have more questions, you can dial us at (844) 272-3424.