When brainstorming ideas for a new home-based business you’re probably thinking about a new company name, a compelling logo and the amazing services you’ll provide. It’s a lot less likely that you’ll be thinking about the mundane details regarding matters such as home business insurance. And although coming up with an eye catching design, the proper goods and services and a memorable name will be integral to your enterprise’s success, understanding home business insurance and how it works will ensure you don’t run into a nasty surprise once things are up and running. Here are some of the aspects you should know about home-based business insurance and why it’s important to have.
Third Party Liability Protection
Home business insurance is there to provide protection in case anything untoward happens to you or your customers. When providing goods or services there’s always the possibility that accidents, damages or losses might occur. This may seem more apparent when providing physical goods or services such as food, clothing or shelter, but even providing something intangible such as information can result in a client suing you for harm or loss. Third party liability plays an important role in home-based business insurance and exists to protect you if you get sued by a customer or client.
If your goods or services cross borders, you should let your insurance provider know about this. Finding out what territories your insurance covers beforehand will prevent any surprises or disagreements between you and your insurance company. Cross border transactions may require specialized coverage, so be sure to keep your insurance provider informed about where exactly your business empire extends.
Additions To Your Home Insurance
It may be possible to add home-based business insurance to your current home insurance policy rather than taking out a new plan altogether. It really depends on the type of business you’ll be running, but it makes sense to talk to your existing home insurance provider and see if it’s possible to add a home-based business endorsement to your existing home insurance plan. By speaking to your home insurance provider before you seek out a separate home-based business insurance policy you may be able to save yourself some money and paperwork.
Information About Changes In Your Situation
It’s important to keep your insurance provider informed about any changes in your business situation. Failure to do so can void your business insurance policy which could leave you uncovered and liable for damages, losses or other adversities. If you plan to branch out and provide new goods or services, use your home office for different purposes or significantly alter the way the your business is operating, be on the safe side and let your insurance company know. Similarly, if you’ve started a home-based business but haven’t told your home insurance provider about this development, you may end up with any claims being denied or your home insurance being cancelled outright. Get in touch with home insurance company regarding any business occurring under your roof as soon as possible.
To find out more about how you can save on your home business insurance policy, contact an experienced professional at Bow Valley Insurance for a free, no-obligation quote.