While home-based companies have considerably lower overhead than standard brick-and-mortar shops, there are a few business expenses they shouldn’t overlook. For example, most home-based companies still require some form of business insurance. Even in the most comprehensive homeowners insurance policies, there are undoubtedly holes when it comes to covering a company that operates from inside the dwelling. Thankfully, the following kinds of insurance may be able to fill any important gaps.
What Kinds of Insurance Will Protect My Home-Based Business?
1. General Liability
If a client gets hurt while visiting you at home, your homeowners policy likely won’t cover the damages. As long as you were conducting business at the time of the accident, the insurer can deny the claim. This is why every home-based company needs sufficient general liability coverage. Such a policy will cover both clients and employees in a professional context both at the company’s base of operations and elsewhere.
2. In-Home Business
An in-home business policy covers all kinds of losses. If company equipment is stolen during a break-in while you’re away, for example, this policy would pay out. It can also cover theft of funds and loss of critical documents. Even if your home-based company uses nothing more than a laptop, you could benefit from purchasing this kind of policy in case anything were to happen to that computer.
3. Additional Riders
Purchasing riders, which are additions to an existing insurance policy (such as your homeowners coverage), is the most affordable way to protect a home-based business. If you run a single-man operation, don’t rely on a lot of expensive equipment, and never meet clients at home, a rider could provide all the coverage you need. For perhaps $100 a year, for example, you might be able to get $2,000 to $3,000 in covered losses.
If you want to purchase insurance to protect your home-based business, turn to Phillip Kent Beck Agency. Located in High Point, NC, this Nationwide Insurance® agency is proud to help clients find coverage that will meet both their unique needs and budget. Whether you want a policy for your business, home, or vehicle, you can turn to an accomplished insurance agent on their team. To get a quote or learn more about the coverage they provide, call (336) 434-2111 today.