If you work from home, insurance for your business is still just as important as it would be if you operated from a separate location. Every business operates with a certain level of risk. When you appropriately prepare for these risks with business insurance, you help protect yourself from costly liability claims and so much more.
Here are some essential things you should know about business insurance if you work from home.
Your home insurance isn’t enough
Many business owners who work from their homes assume their home insurance covers anything in their home — including their business operations. But the truth is, a standard homeowners insurance policy will not include coverage for business activities.
Business property insurance
Let’s say a fire destroyed a large part of your home, including some of your business supplies. Your home insurance could cover the cost of repairing or replacing your personal property, but business property is another story. For that to be covered, you’ll want to have a business property insurance policy in place.
Liability insurance for home businesses
A commercial general liability policy can be incredibly useful for a home-based business. With this policy in place, you can have coverage if you are found liable for third-party injuries or damages. If you and your staff conduct business away from your home too, this coverage can also come in handy then.
Let’s say, for example, you own a tree cutting business that’s based from your home. When one of your employees is on a job, they cut a tree that falls and breaks a neighboring window. With CGL coverage, the cost of repairing the damage could be covered.
Workers compensation insurance for home businesses
Workers compensation is almost always required for businesses that employ people. So, if you have employees, even if they work from your home with you, workers compensation insurance is still important. Your employee could be injured at your home or away at a job site. With workers compensation insurance, you’ll have the means to pay for their lost wages and other costs associated with the injury.
Business interruption insurance
When something catastrophic happens in your business/home, business interruption insurance can mean the difference between your business coming through relatively unscathed or not surviving the interruption.
Perhaps there’s a flood in your home office where you conduct your business and where all operations take place. If you’re unable to operate your business and earn income until the situation is taken care of, business interruption insurance can help you cover wages, utilities, and other bills that come up during this time.
Commercial auto insurance
If you use a vehicle for your business, commercial auto insurance is an important part of your business insurance policy. Even if you use your personal vehicle for work, it’s important to have separate business coverage for commercial use — the same regular home insurance won’t cover business operations conducted in the home.
Whether you operate your business from home or a separate location, there are great business insurance options that can protect you from insurance risks. Give us a call today to learn more!