Many people dream of becoming entrepreneurs and starting their own home business. It’s a great idea; you pursue your passions, share your ideas with the world, and have the flexibility to set your hours.
If you’re serious about running a business from home, you need to think about what kind of insurance you may need. That’s where Bow Valley Insurance comes in. We’re insurance specialists who can guide you to the right policy with the right company. We can walk you through any discounts you may qualify for and explain coverage options, everything from replacement cost to water damage.
Determining what kind of insurance you need for your home business may seem overwhelming, but we’re here to help. We’ll discuss:
- Why regular home insurance isn’t enough
- What a home-based business endorsement is
- What a separate business insurance policy can cover
- How Bow Valley can help you
Why isn’t regular home insurance enough?
Your home insurance is designed to cover your home and the everyday activities that occur in it. It’s not designed to cover anything that relates to a home business. Here are a few examples:
- Your home insurance coverage is for your family’s possessions, appliances, and furniture. It doesn’t cover things like merchandise or specialized equipment that may be related to a home business.
- Home insurance liability will protect you if a guest falls on your stairs while visiting you. But it’s not designed to provide protection if someone hurts themselves picking up or dropping off a package at your house for business-related reasons.
A home insurance policy is just not set up to cover business-related damages or losses at your home. Fortunately, we at Bow Valley can help you find the right coverage to protect your at-home business.
Home-Based Business Endorsement may be Enough
A home-based business endorsement is a rider or add-on to your existing homeowner’s insurance policy. This saves you the expense of having to buy a separate business insurance policy.
This type of add-on is less expensive than a separate policy, but it’s not for everyone. It’s best suited for a small operation that doesn’t manufacture any goods. A home-based business endorsement can protect any business property as well as providing liability coverage.
A home-based accountant or lawyer might find this endorsement quite suitable. We’d be happy to discuss with you what this would cost and whether it’s a suitable option for your home-based business.
Separate Insurance Policy for Your Home-Based Business
If you have a home-based business that has employees or manufactures any type of goods, you will likely need a separate insurance policy for your home-based business. Business insurance can help cover anything from damaged equipment to a personal injury.
The most common types of business insurance coverage you can buy are:
Commercial property insurance
Inventory can be the lifeblood of your home-based business, and the costs of replacing it can be extremely high. Commercial property insurance will cover replacement costs if a fire or flood damages your inventory, or someone breaks in and steals it.
Equipment breakdown insurance
If you have specialized equipment, such as a printing press for t-shirts, it can be expensive and time-consuming to replace. Protect yourself with equipment breakdown insurance.
Business interruption insurance
If an equipment breakdown completely stops you from running your business, then business interruption insurance will help cover lost income.
General liability insurance
Commercial general liability insurance is a must if you are going to have anyone coming to your house for business purposes. This type of insurance will protect you and your business from a loss if you are found legally liable for an injury — e.g. a slip and fall on your steps — or property damage to a third party.
Professional liability coverage
This is sometimes also called Errors and Omissions insurance. This kind of coverage can protect you in case of mistakes or errors in your work. If you miss a deadline or leave important information out of a document, you could be sued by your client. Having professional liability coverage can help protect your business from costs associated with these types of lawsuits.
Running a home-based business is hard work, and the right insurance can give you peace of mind and protection. We want to make sure you’ve got the right coverage, no matter what type of home-based business you have.
You’re Ready to Get Started
You’ve learned that if you have an out of home business, you can’t depend on your home insurance to provide you with sufficient coverage. We’ve talked about the following:
- Why regular home insurance isn’t enough if you have an out of home business
- What a home-based business endorsement is and if it’s sufficient for your needs
- What a separate business insurance policy can cover, including everything from liability to broken equipment
- How Bow Valley Insurance can help you get the right coverage at the right price
To learn more about the types of insurance you need for a home business, call Bow Valley Insurance at 587-855-9918 or contact us here.
Coverage is subject to policy wording, terms, conditions, and deductibles. Protection is limited to the perils, coverage, exclusions, and limits shown on the policy.