Engaging with people. Adding customers. Keeping them happy.
Running a home business can be fun but also stressful – especially since a home based business is often a one man show.
Balancing the needs of your family and the demands of your business while creating a separate space and a strict routine for your business can be a challenge. But the greatest challenge comes when your business starts growing. While you are struggling to bring your first client onboard, you may not feel like you’ve really started a fully fledged business. But once you start getting customers, you know you’ve arrived!!!
A home based business owner is responsible for handling all of his business responsibilities – sales, marketing, customer service and also BUSINESS INSURANCE.
Business insurance is important for success
Like any other business owner you will have a tough time deciding on various business aspects – defining your business goals, strategies, budget, and ways to provide excellent customer service – after all customers are the most important part of your business.
There are a few things that are not directly related to the success or failure of your business yet are just as important. Business insurance is one of them.
Why does my home-based business need insurance?
You must be thinking “my business is home based. Do I really need insurance?” The answer is “Yes, you do.” Why? Here are some reasons:
Saves you from unexpected expenses: Suppose you have ordered a new printer for your business. The printer delivery guy comes to your door with the printer but it suddenly slips and he hurts himself. What will you do? There may not be coverage under your homeowner’s policy. Business insurance can help you in a situation like this.
Your homeowner’s policy might not be enough: You may think that your home based business will be covered under your homeowner’s insurance. But that might not be in the case. In fact, your homeowner’s policy may specifically exclude most business activities.
If there’s a fire at your home and it consumes your office equipment, it is possible that none of the office losses would be covered. Your insurer could even invalidate your homeowner’s policy for using your home for running a business.
Treat your home business like the real business it is: You are the owner of your home-based business. Be a smart business person and buy insurance for your business.
Which business insurance is right for me?
One of the reasons business owners do not opt for insurance is to avoid confusion. They are not sure which business insurance is right for them. Here’s a guide to help you get your home based business insured:
Add on to your homeowner’s or renter’s insurance policy
The easiest and least expensive home-based business insurance policy is an add-on to your homeowner’s or renter’s insurance policy. The cost of such a policy is typically minimal – around $100 a year – but it can provide up to $2,500 of additional coverage, says Loretta Worters, VP of the Insurance Information Institute in New York City.
This type of plan is perfect for a one-person business without many valuables. For example, a tax consultant who works at home calculating his customers’ taxes and delivers returns via email. But it might not be enough to help the injured Printer delivery guy.
In -home business policy
An in-home policy is perfect for more serious home based business owners. It covers a wider spectrum of contingencies including loss of important papers or theft of funds. Rates of this insurance plan are typically between $250 and $500 and can provide coverage of $10,000.
This plan is for more serious business owners and it covers business equipment and liabilities, like the injury of the Printer guy.
Business owner’s policy
If you are looking for a policy that has coverage of over $10,000, then you may want to look into a business owner’s policy. These policies are typically meant for brick-and-mortar companies. This type of plan covers loss or damage of business equipment, loss of important records, professional liability cases, business interruption in case of power outrages or a natural disaster.
These plans might not protect you if you are driving your personal vehicle for business purposes, however.
As your business grows, you might need other policies like life insurance, worker’s compensation, business-vehicle insurance and others. But for most home based business, a business owner’s policy can provide more than a basic safety net.
The bottom line is that you should speak to your insurance agent to determine what your business needs are and make sure you are covered for those unexpected events. He is the best person to guide you for all your business insurance needs.