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What Kind of Insurance Do I Need for My Home-Based Business?

Monday, July 6th, 2020

If you’re reading this post, chances are you already own a home-based business or you’re planning on starting one. One of the bases that must be covered is ensuring you have the right insurance in place for your home-based business. 

Keep reading if you’d like to learn more about what kind of coverage is right for you. 

Insurance for Home Businesses

Homeowners often think their regular home insurance will cover any work-related activities within the home. But that’s simply not the case!

The right type of coverage can be different depending on the type of business you run and the scale of your operations. That’s why it’s important to speak to an insurance professional in your area to get the information you need. 

Why Coverage is Important

Depending on the type of business you own, you could face any number of risks each day. Whether they’re financial, cyber, physical, or liability risks, you need to have the right coverage set up for whatever could happen.

For example, let’s say an employee is working at your home when they’re injured. Will your home insurance liability coverage be applicable? The answer is usually no! So, without special insurance for situations like these, you could be left paying thousands or even hundreds of thousands of dollars out of your own pocket. 

Coverage Options

An in-home business policy might provide enough coverage for you if you have a small business. It can typically cover injury and theft for up to 3 employees and up to $10,000 in losses in many cases.

These policies tend to be very affordable and they do offer some liability protection, but it’s often not enough. For example, they almost never include errors and omissions insurance to prevent you from certain third-party claims. But there are usually options for adding this coverage on separately which is something to consider. 

For bigger operations, a business owners policy (BOP) is a great choice. They offer more comprehensive coverage for businesses who need more than $10,000 in coverage. 

Some of the coverage these policies can include are:

  • Loss or damage to business assets, documents, and equipment
  • Professional liability coverage
  • Liability for employee/contractor or customer injuries
  • Loss of income or business interruption insurance

In some cases, these policies can also include some commercial vehicle coverage, but not always. It’s critical to make sure you have that protection added on if you use vehicles for any of your business operations. 

We can help with business insurance and more!

Whether your business insurance needs are big or small, we’re here to help. We’re also here for all of your auto, home, and farm insurance needs as well. Contact Fargo Moorhead Insurance today for a free quote!