As a Single Contributor Small Business Owner with a home office, What Insurance Policies should I consider?

The importance of business insurance cannot be overemphasized. No matter the size or location, every business is exposed to certain risks. From the moment your business kick starts activities, the right insurance policies need to be put in place.

Small businesses are often more vulnerable to risks than bigger firms. A single legal battle or one accident can be enough to cripple a small business before it even gets the chance to grow. 

For many small business owners, there is no separation between personal assets and their business assets. But should there be a separation between the personal and business insurance policies? It all depends on the types of policies you have. Home insurance and business insurance are two different types of insurance policies. 

If you assume that your home insurance policy will cover your home office, you are making a wrong assumption. Business activities within your home can impact your home insurance coverage when it’s time to make claims. The insurer can make your policy invalid because you use your home for business activities that they are not aware of. So, what type of insurance coverage can cover a home office? 

Professional Liability Insurance 

If you run a home-based business, you should get a kind of liability insurance, such as Professional Liability Insurance. If your client suffers any damage as a direct result of using your products or services, this policy is set up to protect you and your property from legal expenses and pay the customer compensation if the need arises. 

Business Property Insurance

If you have a home office, all business activities take place at home, so it is good to ensure your home from damages, loss, and property theft. However, you also need business property insurance in addition to home property insurance because your home office certainly has some equipment and other assets that will not be covered by your homeowners’ insurance. 

General Liability Insurance 

This is another type of insurance policy all home business owners taking clients visits should have. If an injury occurs to your family or guests within your home, it would be covered by your homeowner’s insurance policy. But what happens if a client visits your home office and an accident happens within your premises? This is where general liability insurance comes in; it covers clients and employees on your business premises. 

Product Liability Insurance 

If your home office or business sells products to customers, it’s essential to get a Product Liability Insurance to protect your business from liabilities resulting from using your products. 

Commercial Auto Insurance

This insurance policy is essential to people who run home-based businesses (especially the ones involving deliveries and client visits), as you would always need insurance back-up for the cars, vans, and trucks used to run your business. It covers liability, damages, uninsured motorists, and medical payments.

Conclusion 

Do you have a home that also serves as your office? Getting a homeowner’s insurance policy is useful, but it is not going to cover claims and liability related to running your business out of your home. Most homeowner’s insurance policies don’t cover your business liabilities, equipment, and inventories. If you run your business activities at home, choose any additional business insurance that will protect your business, it’s equipment, and inventory.



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