Working from home can provide flexibility and freedom as well as improved work-life balance. Making the transition to remote work requires some forethought, however, especially if you own your business. One factor to consider is commercial insurance. Here are the answers to four frequently asked questions about home-based business coverage.
What You Should Know About Home Business Insurance
Why do I need coverage?
Your homeowners policy covers personal property and protects you from liability claims if someone is injured on your property. However, this coverage typically doesn’t cover business assets. Even a small home-based business could sustain significant losses in the event of a fire or burglary, for example.
Business insurance also covers you for other commercial-related risks. This includes mistakes that cause a client to lose money or defective products that result in illness or injury. If you travel to other people’s property to work, this policy type is also essential to cover the risk of damaging a client’s personal property.
What kind of coverage do I need?
The kind of policy you need depends on your business. For medium-sized businesses with assets under $10,000, a home business policy might be best. This offers protection in case you’re required to compensate someone for injury, property damage, or poor work quality. For example, if a customer gets hurt on your property, this type of insurance could cover their medical costs. It may also cover you for false advertising or libel and slander.
Meanwhile, commercial policies are better for large businesses. When there are several thousand dollars in assets and a higher risk of liability, a significant amount of coverage is necessary to protect your interests and bottom line.
Does it protect against data theft?
Privacy and data security are crucial considerations for business owners in almost any industry. While corporate cyberattacks make headlines, small businesses aren’t immune to the risk of data theft.
Being a victim of such an attack could expose you to liability claims that may force you to shut down. Many home business policies offer an option for cyber insurance to protect you from the fallout of such incidents and help you recover.
What other factors should I consider?
When shopping for home business coverage, consider all facets of your company and the roadblocks you could potentially face. For instance, you may want to ask about business interruption coverage, which can cover expenses such as lost wages and income in the event of a natural disaster or another event that requires you to shut down for a period. You might also need commercial vehicle insurance if you have a company car or use your vehicle for work purposes, as your personal auto policy may not protect you while you’re “on the clock.”
Business owners across the United States trust Seeman Holtz for trustworthy coverage. Based in Boca Raton, FL, these financial advisors provide guidance for all your insurance and financial needs. From general liability to risk management and employee benefits, they provide a range of services to help businesses succeed. Call (800) 991-3592 to speak with a friendly staff member to schedule a consultation. Visit the website to request a quote online.