Should I Have Insurance For a Home-Based Business?

​A lot of business owners operate their venture in the four corners of their home. However, what some of them do not know is that their home-based business isn’t covered by homeowners insurance policy.  There is a separate coverage for that called “home-based business insurance.”

Most of you might think that homeowners insurance would cover business-related losses and damages occurring at home. Well, unfortunately, you thought wrong. Whether you are a photographer or a yoga instructor, you should consider getting home-based insurance based on the nature of your business. Here’s why:

​Your Clients or Visitors
If you have clients visiting your home-based business, then you should consider getting home-based insurance with liability coverage.

Number of Employees
If you have more than 1 or 2 employees, it would be wise for you to get home-based insurance as it provides liability coverage for your staff and contractors. However, there are some instances when you need Standard Business Insurance. So, ask your agent about the type of insurance you need for your business.

The Type of Inventory
While it may be easier to buy additional insurance for expensive inventory and equipment to your homeowners insurance, you might have to think twice. If you have a combination of on-premises and off-premises inventory, consider getting home-based business insurance. Having such policy would protect you against any losses that cause interruption to your business for a given period.

Consulting Business
Even if you can’t relate with any of the points above, you might want to consider professional liability insurance (or errors and omissions insurance) as an added insurance coverage for your home-based consulting business.

In any given circumstance, it would be best that you consult first with your insurance agent about the type of insurance that would best suit the needs of your business. Always remember that when you conduct business at home, you have an increased risk of losses.

Here at  AVA Insurance & Auto Tags, we seek to protect your financial future. If you want to know more about home-based business insurance, call us at (954) 454-5483 or contact us by clicking here. You can also get a free quote from us now!