How To Protect Your Home-Based Business

How To Protect Your Home-Based Business

If you are running a business at home, how will you protect it? Can you rely on your homeowners’ insurance coverage alone? In this post, we’ll talk about how you can protect your home-based business. 

Your homeowners’ insurance policy may be a cushion for your business, but it will not insure all of it, which means you may need to get extra business insurance. It’s likely that your existing homeowners insurance doesn’t include protection for your business’ technology, files, and professional equipment. 

So, how do you insure your home-based business? 



Get A Business Property Coverage



You can get additional coverage to increase the protection of your homeowners insurance policy, which may help cover inventory that is stored in your home as you prepare to sell or deliver them to your clients. However, this coverage may not cover specific types of equipment or businesses, which is why you need to know everything that is available to you before you get this coverage. Still, this is a good option. 



Consider In-Home Business Coverage



In-home business coverage is for individuals who need more protection than homeowners’ insurance coverage. This coverage provides broader protection than a homeowners’ endorsement and it may also provide liability coverage and reimbursement for lost income. Additionally, it typically covers business materials stored in another structure within the property. 



Get A Business Owners Policy



Keep in mind that not all home-based businesses will be eligible for business property coverage or an in-home business policy. This is why some entrepreneurs get a business owners policy instead. This policy provides coverage for business property and loss income, and it has broader coverage, which may include liability coverage and extend to business property that’s away from home. 



Consider Product Liability Insurance



If your home-based business involves selling products, consider a product liability insurance that will protect your company from liability, which will result in the product’s performance. That way, you will be at peace knowing that whatever happens, you and your company are protected. 



Consider Professional Liability Insurance 



In the case that you offer services, you are going to need professional liability insurance that will protect you and your customers. For example, if a client claims to have suffered damages through your services, your insurance will protect your personal assets and pay for your defense against the claim. Keep in mind that there are different types of this insurance that you may need, which is why it’s essential you sit down with your agent to explore your options. 



Get A Business Interruption Insurance



This coverage will help cover your lost revenue should you get forced to suspend business operations due to fire, flood or other disasters. Business interruption insurance is essential for entrepreneurs who are located in high-risk areas. 

Even if you’re only working from home, it’s vital you ensure that your business is protected at all times. Having the right business insurance coverage will keep you safe and secure. 

Contact us here at Panorama Insurance Agency Inc. and let’s discuss the available insurance policies for your home-based business. We will help you get the right one to suit your needs. 

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