The right insurance plan can help mitigate some of those risks and keep your business – and yourself – safe.
With the market being as volatile as it is today, protecting your business becomes even more important. Businesses now take different steps to ensure their wellbeing; as a business owner, you should too. Even a one-man operation from home needs to have proper safety nets. This is where insurance plans come in handy.
As a business owner, you are exposed to certain business risks. The right insurance policies can help mitigate some of those risks and keep your business – and yourself – safe. Which insurance do you need for your home business? That is what we are going to find out in this article.
General Liability Insurance
General liability insurance is where you should start with insurance policies for your business. It is the most essential small business insurance that will protect the business from external risks. The next time someone gets injured because of your products, services, employees, and other part of your business, you know you have a general liability insurance policy to cover you.
There is also professional liability insurance. These policies are designed for professionals who operate from home, giving added protection against third-party liabilities incurred while you work as a professional in a particular field. General liability insurance actually doesn’t cover damages caused by you (when performing things related to your work).
If you are a homeowner, chances are you already have property insurance. When you start and run a business from home, that property insurance policy needs to be adjusted to reflect the nature of your business.
As the name suggests, property insurance is designed to protect your property and other assets in it. Once you adjust the property insurance, you will have your office equipment, including computers and other assets, protected as well.
Even as a home business, business growth is something you want to pursue. This means expanding your operations, catering to more clients, and recruiting employees to ensure every part of your operations is handled properly.
When you have employees working for your small business, make sure you also have worker’s compensation insurance in force. The worker’s compensation insurance will take care of any cost and third-party liability related to a worker getting injured on the job.
Keep in mind that worker’s compensation insurance is mandatory in certain states, even when you are running your business from home. Make sure you check the local regulation before deciding whether to get this type of coverage.
Business Interruption Insurance
One last blanket of protection to get for your business and yourself is the business interruption insurance. This insurance coverage allows your business to survive in the event of a catastrophic disruption.
Let’s say your house is flooded and destroyed. Your property insurance will cover the damages, but it will not provide you with a sustained stream of income. Business interruption insurance compensates you for the loss of income until your business can recover.
There are still other insurance policies you can get to further protect your business. The insurance options we discussed in this article are just the essentials. With the right insurance policies in force, you can run your home business and stay protected at all times.