In the past decade, the rate of people becoming self-employed or starting home-based businesses has skyrocketed. Unfortunately, many people who work from home mistakenly believe that they do not need business insurance, thinking their renters or homeowners insurance policy will meet their needs should an emergency arise; however, this is not always the case. CIG Insurance Agency and their team of expert insurance agents in Canandaigua, NY, explain below why you should consider a business owners policy (BOP) for your home-based business.
3 Important Reasons You Need a BOP for Your Home Business
1. Damage to Business Equipment or Data
Your homeowners insurance policy covers personal property, not commercial property. While you might be able to pass off a damaged or stolen business laptop as personal property, your homeowners policy probably will not cover a sophisticated communications setup, copiers, fax machines, data servers, and other equipment that is clearly for business purposes. To get the protection you need, a business insurance policy is your best bet.
2. Professional Liability
If you make your living by providing professional services or advice—like legal, medical, accounting, or consulting services—you need professional liability coverage. This protects you financially should you commit an error or omission in a professional capacity that costs your client money. It covers damages and pays the legal costs of defending a lawsuit in court. Your homeowners insurance policy won't even touch this kind of claim.
3. Business Interruption
Business interruption coverage replaces a portion of lost business income if a disaster should strike and cause a shutdown of your home-based business. Its purpose is to keep your business in the same financial position as if the fire, storm, or another type of disaster had not happened.
CIG Insurance Agency, the most trusted and experienced insurance brokerage in Canandaigua, NY, offers a comprehensive list of exceptional products for both personal and business purposes. They can help you design an affordable BOP that protects both you and your home business financially. Visit their website to request a quote, or call (585) 394-5544 to speak with a friendly, knowledgeable insurance agent.