Commercial insurance is essential for every business, whether your business has a physical office, or you operate out of your home. One thing many at-home business owners forget is that, regardless of where you run your business, you need insurance. Thankfully, there are many different types of business insurance, some of which are geared towards business owners who operate out of their own homes.
If you are one of the 15 million people in the US who own an at-home business, these are things you need to know about choosing the right insurance to keep you fully protected.
Do Customers Visit Your Home?
General liability insurance protects you in the event someone is injured on a property owned by your company. If you are completely remote and don’t regularly have customers meeting or visiting at your home, it may not be required to have this type of insurance, but it’s always a good idea to have. However, if you do frequently have customers coming to your home office, it may be a type of business insurance you purchase. While your homeowner’s insurance can cover incidents that happen at your home, it’s best to have separate insurance that covers your home when it’s operating as your place of business.
Do You Have Business Property at Your Home?
Business personal property insurance can help protect valuable items that belong to the business if you keep them in your home. These types of items can include computers and peripherals used for business, as well as many other business-related items, from valuable furniture to other devices.
Do You Have Employees?
Worker’s compensation can be required for business owners (depending on your state) even if your offices are run out of your home. This insurance helps cover injuries or illnesses that can occur at work. You may also be interested in employee dishonesty coverage, which protects your customers should one of your employees steal money or property from them.
Even if you own a sole proprietorship with no employees, there are still workers’ compensation plans that can protect you should you become incapacitated and cannot work. These, along with business interruption insurance, can adequately protect your business from when revenue is lost due to an injury you sustain while working.
Errors and Omissions
Depending on the type of business you run, you may need to have errors and omission insurance even if you operate out of your home. Similar to professional liability insurance, errors and omissions insurance protects you against claims of mistakes, negligence, inadequate work, inaccuracies, misrepresentation, etc.
Commercial Auto Insurance
Your personal auto insurance may cover some business use of your car. If it doesn’t, you can choose to obtain a commercial auto insurance plan that protects the vehicle you use for work (even if it is your own personal vehicle). This is particularly important if you are a ridesharing driver.
Cyber security and liability insurance provides protection should a nefarious actor gain access to your customer’s personal information, financial information, etc. by hacking into your software systems or stealing your computer from your home. This type of insurance can help you cover the damages and the costs of the investigation into the breach.
Business Interruption Insurance
Business interruption insurance helps cover the costs of lost business/income if something disrupts your business (e.g., if you are unable to conduct business out of your home office because of theft, a fire, etc.).
Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.
Need to obtain insurance for your home business? Contact the commercial insurance experts at The Patrick J. Thomas Agency today!