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Does Your Part-Time Business Need Commercial Insurance?

As a part-time business owner, it’s likely that you’ve got a lot on your plate. One thing you shouldn’t have to think twice about is whether or not you need commercial insurance.

A part-time business should always have commercial insurance coverage. This is largely due to the fact that your personal coverages won’t be able to take on the bigger business costs. These bigger costs can be anything from business inventory to liability.

Here we break down some of the details on commercial insurance to help you understand what you will need and the costs associated with it.

How much does commercial insurance cost?

The cost of commercial insurance for a part-time business will vary greatly. 

It will depend on a number of factors including:

  • Business industry
  • Number of employees
  • Location of your business and surrounding factors (distance from a fire station, fire hydrant, etc.)
  • Revenue
  • Security and damage detection devices
  • Property value (the cost to rebuild and replace)
  • Insurance and claims history

If you are looking to lower the cost of your commercial insurance, you can look for bundling options with your insurance company or choose a higher deductible. Always try to fix damages on your own before submitting a claim and think about installing preventative measures.

What does commercial insurance cover?

Unfortunately, running your business from home doesn’t mean that your home insurance will cover work related damages. This is because your home insurance is meant to cover your personal property as opposed to your business property. Look for home-based insurance solutions with your provider.

Operating your business elsewhere will require commercial property insurance. Generally, this coverage extends to:

  • Vandalism and theft
  • Fire and smoke
  • Explosion
  • Electrical current
  • Hail and wind
  • Water damage
  • Vehicle or aircraft impact

Your coverage will depend on your insurance company and the items that you agree upon. Always be sure to research what coverage will be most important to your unique business and prioritize based on your needs. 
Contact us for more information and commercial insurance and set up your policy today!

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