Three Types Of Insurance You May Need For Your Home Based Business
Today more people are working at home, but there are also a growing number of people who are starting businesses from their homes. If you are one of these people starting a new business, you may be surprised to find out that there are important insurance policies that you should have to cover various aspects of your business. The following are a few of the most important type of insurance coverage you should think about buying for your home business.
Insurance for equipment and inventory
Although your homeowners insurance policy covers personal property, it will not cover your business equipment. It may be tempting to simply use your homeowners policy in case of a fire or theft, but if you plan on deducting expenses at home on your taxes, there will be a record of your business. You may even have a business license. All of this means there is a record of your business operating in your home, so if you file a claim on your homeowners policy, it may be rejected. It is best to get a separate policy for your business. This takes on greater significance if you have inventory in your home. Business Insurance can cover both your equipment and inventory.
Insurance for your car
Don't assume that you can use your car for business, and you don't need additional coverage for it as it relates to your business. If all you are doing is using it to pick up supplies for your business once a week, you may not need any business insurance for your car. However, if you are making deliveries and picking up items several times a week, you may need additional business coverage. And if you have an employee who is using your car, you certainly need business coverage. Your current car insurance policy will have limits for personal use only.
Insurance against liability
This is something you may need, but it depends upon how many people will be on your property due to your business. The liability coverage you have for your homeowners policy will only cover guests at your house and not clients or other people that you are doing business with. If someone were to get hurt because of something simple like a fall, you may end up paying for the medical bills.
Don't ignore your insurance needs when you start a home business. Whether it is your homeowners policy or your auto policy, your business is rarely covered. And if you need to make a claim, a claims adjuster may discover your business and reject the claim. Talk to an insurance agent today, and learn what coverage is available and what best fits your type of business.