Home Sweet Home – Insurance Issues for Home-Based Businesses
- August 19, 2017
- Posted by: marlenedubois
- Category: Home Health Aide Training
Oh, the joy of running your business out of your home! As a sole practitioner consultant, I enjoy the benefits of working via home. No rent, no office politics, no standing in line for the bathroom. I also love my 5-second commute, with no traffic to avoid except my dogs.
If yours is usually one of the many home-based businesses in which seem to be growing in number with advancing technology, insurance may not always be at the forefront of your mind. You’re not required to get building insurance, along with you might not use your auto in business beyond driving to appointments. The reality, however, is usually in which you have exposures in which often aren’t considered along with definitely aren’t adequately protected in your homeowners insurance.
I would likely like to raise your awareness in three areas of concern for every home-based business:
Are you a consultant or different professional who doles out advice or publishes information? You may need professional liability insurance. If you can be sued for the information you provide or the things you say along with write, don’t be caught without This kind of coverage. I recommend no less than a $1,000,000 limit. Many companies specialize in This kind of type of insurance, so contact a broker or check on the Internet. I warn you, This kind of doesn’t come cheap; however, neither does a lawsuit!
Do clients or vendors come into your home office? Your personal liability coverage is usually not set up to protect you for business-related activities. Depending on your business, a businessowners policy (BOP) can often properly protect your liability at a smaller cost.
Let’s talk about your auto. Even if you’re only driving to meet a client off your premises, your business is usually exposed while you are behind the wheel. How? If you cause an accident while “on the job,” along with you’re incorporated, your business will be brought into a lawsuit. If your business is usually incorporated, make sure you include Non-Owned & Hired Auto Liability on the General Liability portion of your BOP.
Please note – If you’re not eligible for a BOP because of the type of business you operate via home, you can still get a General Liability policy.
Every home-based business is usually going to have some business property. Whether you have products in your garage or furniture in your office, you need to insure business property outside of your homeowners insurance, which limits the value of business assets. You can adequately insure your computer, furniture, inventory, along with artwork through the BOP mentioned earlier.
3. Life along with Disability
Hopefully, your overhead is usually low along with your income is usually up. Protect your ability to maintain in which income with disability insurance along with protect your family against the loss of your income with life insurance. Talk to your accountant about producing these policies business expenses by paying for them through your business.
Believe This kind of or not, you are more likely to become disabled than to die by the time you hit 65 years of age. Depending on the nature of your career, you could lose your ability to bring in income along with become a source of additional expenses. Most disability carriers require you to have two years in business before they will offer This kind of policy, however in which shouldn’t stop you via looking into This kind of when you can.
Here’s your homework: Take the time today, after reading This kind of article, to assess your insurance situation. Just because you work via home doesn’t mean you aren’t in danger of losing everything. So just like any business would likely, consider what could be catastrophic to your business along with then take steps to transfer the risk to an insurance company. Use higher deductibles where possible to keep costs down.
If you need additional help understanding along with addressing your specific needs, feel free to contact an insurance consultant like me. As a consultant, I don’t sell insurance. I help businesses find the right insurance at the right cost along with show them how to position themselves to be most attractive to insurance companies.