How Business Insurance for a Home Business is a Different Beast

How Business Insurance for a Home Business is a Different Beast

Working from home is an exciting experience since you get to spend more time with your family and earn from your comfort zone.  It, however, comes with its challenges if you do not take it seriously. One of the issues that most home-based businesspeople ignore is the need for business insurance.

It’s easy to assume that your home insurance covers the activities of your business. Some people make this mistake due to the confusion of what the home insurance covers and what it does not. You should know that your home insurance cannot cover you against losses from your business. That is why you need business insurance to protect your work against any negative occurrences.

Why business insurance is necessary for home-based business

Let us take a scenario of a fire in your home. Your home insurance can compensate you for some of the losses but not business property. The failure to mention that you were running a business from home can make you suffer losses.

In another circumstance, your delivery man may slip and fall in your home while they carry your packages. If you ask for compensation from your insurance provider, they may not compensate you with the claim of not covering business deliveries. Some can cancel the policy and leave you stranded.

From the two examples above, you see that there is a need to approach an insurance provider to prevent such occurrences. What matters is not how much you make from your business, but how much you can lose in case of a disaster.

You can consider the insurance company that we use - aorinsurances.ie. They provide a personal, customised service and competitively-priced cover. The package you choose depends on how complicated or straightforward your business is. Make sure that the insurance policy you choose covers the cost of replacing items for you to get full compensation.  

The following are some of the cover options that you should consider.

Cash float Insurance

Useful if you have cash or a till on the premises you obviously want to protect it against theft and employee malfeasance, you can choose this type of cover.

Property insurance

If you have a lot of property that you use to run your business from home, they should all be covered under property insurance. It is good to be open-minded and think about the risks involved in conducting business from home. For instance, your home could be raided, and this may affect your business if the expensive equipment is lost.

To avoid such, come up with a rough estimate as to how much your business equipment cost so that you can insure against loses using this package. If you have machines such as computers, printers or office telephones, do not take the risk of not getting property insurance.

General liability

Accidents occur all the time, but your home insurance cannot cater for injuries of third parties even if they visit you at your home. That is why you need this form of insurance which covers accidents and injuries to employees and clients who work or visit your home based business.

Business vehicle insurance

You could be using your vehicle to operate your business from home. Some of the activities could be making deliveries, picking packages or visiting clients.  You require this form of coverage to protect it against any damages in the line of work. This insurance can cover your vehicle in case of an accident. In a scenario where an employee uses their car to facilitate your business, you should get them special insurance.

Professional liability

If you offer services to others from your home business, you require liability insurance. This covers you as well as your clients. A client may claim to suffer damages from your professional action caused by negligence. This business insurance can protect your assets in this claim if the court rules out that it was not your fault.

It also ensures that the client receives compensation for the damages they have suffered. Malpractice insurance can be a form of professional liability that can cover you if you offer a service that does not go as you would expect. This is not limited to professionals such as doctors alone.

Errors insurance

If you are in the line of offering professional advice to clients, you will need this package. A client can claim that the information you provided was incomplete or had errors. If they win the case against you, this insurance can cover for damages.

Business owner

Every home based business should get this cover. It gives you an extensive coverage that includes general liability, property insurance, professional liability as well as business interruption. If a disaster such as a fire outbreak makes you suspend your business operations, this insurance will cover for the losses incurred.

Health and life insurance

Protect everyone directly involved in your business by taking a health and life insurance coverage. This covers them in the event of a disability or illness.

Final thoughts

Every business including those that are operated from home premises should follow the business regulations set by the country or state where you are located. Your home based business should observe health codes and employment laws. Taking business insurance can prevent you from suffering unrecoverable losses or business-threatening litigation. Find one that offers you a customised policy cover options at a reasonable price for your business needs.