Starting a new business in your home is an exciting process. You get a feeling of being in charge and the thrill of building something from scratch.
There are many steps involved in starting a business: establishing a web presence; registering your business; and finding vendors and customers. However, what many new home based business owners forget to think about when starting their new business is their home insurance. With a new business comes new liability, especially if people visit your home for meeting or consultations.
If you’re in the process of setting up a home based business, here are the things you need to know about your insurance.
Always Talk to Your Insurance Broker
Whenever you make any changes to your home, you most likely will call your broker. For most homeowners, calling their insurance broker is second nature whenever a new element comes into their lives. The same should be for when you start a home based business or make changes to it.
Granted, it’s not terribly intuitive to relate your homemade leather goods business to your home insurance. The important thing to keep in mind is if you store equipment, supplies, finished goods in your home, or have employees that come to your house for work, you need to update your insurance policy. Talk to your broker about your business model, how many assets you plan to keep in your house, and any other new liabilities that home insurance could help cover.
If you’re not covered at the time you ship a faulty item or someone gets hurt at your home based business, you may be on your own to cover any legal or medical costs.
Err on the Safe Side of Liability
No matter what type of business you run, there will always be added liability. Whether it’s in the form of a visiting customer slipping and falling at your home or you left a sharp object in a dress you sewed up and shipped, there’s always the possibility that someone could get injured and sue.
We’re not telling you this to deter you from starting a home based business. It’s meant to put into perspective that accidents happens inadvertently. That’s where added liability insurance can help cover you in strange situations like the ones above.
Do You Sell Across Border?
If you plan to sell items online and ship them, you’ll need a special type of business insurance to cover any liability. This is especially true if you want to sell items outside of Canada. Your broker will be able to walk you through what your insurance currently covers for your home based business and where you might need to purchase supplemental insurance.
When Do I Need Standard Business Insurance?
A home based business insurance policy will cover your, equipment, office supplies, and inventory you keep in your house. If your business has employees, a commercial general liability insurance policy will be required to protect you in the event something happens to your employees or your customers.
Starting a home based business can be exciting and feel like taking a big leap of faith. Luckily, you can ease your worries with a home based business insurance policy to protect you and your assets. To learn more about insuring a home based business and how you can save money on your premium, contact an experienced member of the Bow Valley Insurance team today for a free, no obligation quote.