As a business owner, it’s important that you protect your assets as much as possible — and this often means insurance. It’s important to understand what insurance options are available to you, as well as understand the limitations to your personal insurance. This is especially important if you have a home business.
Do I Need Business Insurance if I Work from Home?
One of the first things you need to do is figure out whether or not your personal insurance policies will cover losses due to business activities, or cover business items. Check your policies. In some cases, your homeowner’s policy won’t cover damage to your home office. Some policies specifically exclude business supplies that you keep in your home.
Additionally, realize that a vehicle that you drive for business purposes might not be covered under your auto policy. You need to contact your insurance agent, or read the policy, so that you understand what, exactly, is covered.
Types of Insurance Business Owners Should Consider
Whether you run a home business, or whether you own a business that operates elsewhere, it’s important to make sure that your assets are protected. Consider your individual needs, and determine whether or not any of the following policies might be necessary in your situation:
- Business Owner’s Policy: This type of insurance policy is a blanket approach to coverage, including property and vehicle insurance, as well as liability and business interruption coverage. This bundled approach can, in some cases, be cheaper than buying several policies.
- General Liability: If you want protection in the event that your business causes damage to other property, or causes bodily injury. Even home-based business owners should consider this type of insurance.
- Worker’s Compensation: If you have W-2 employees, you need to have this type of insurance policy.
- Property Insurance: This insurance will protect your business property, from the building in which your business in housed, to office equipment. You can be protected from losses related to a number of situations.
- Commercial Auto: If your company has its own vehicles, this type of insurance is a must. It can help protect you from losses due to damage to the company vehicles. You can also get non-owned liability coverage if your employees are required to use their own cars for work activities.
- Business Interruption: If something happens that prevents your business from operating, this type of insurance policy can help. You can have your earnings protected, receiving payouts that can help you get back on your feet while you get your business going again.
- Errors and Omissions: Also called professional liability insurance, this type of insurance is aimed at helping protect you from losses due clients claiming that you failed to properly render professional services, or that or advice damaged them. Financial planners, lawyers, insurance agents, consultants, accountants, salon owners and others should all have professional liability insurance.
Consider your business, and the needs you have. You want to make sure that you are protected, and that your business will survive if things become difficult. With the right insurance policies, you can ensure that you are ready for almost anything.