Home Based Business Insurance - Is It Really Necessary?
Starting a home based business is rarely an easy decision. If you are contemplating or have already started a home based business, you need to seriously consider purchasing business insurance.
The main positive aspect in the decision process is the fact that you will be working at home. If you own your own home, you most likely believe that by having home insurance your business will be protected under the same policy. That could not be further from the truth. Your home owners insurance covers your house as a "home". Depending on the type of business you are operating, the simple actions of running your business could actually nullify your home owners policy. Filing a claim on your home owners insurance based on your home business activities most likely would render it void and could lead to charges of insurance fraud being brought against you.
Business insurance is designed to protect your business activities as well as all equipment owned, or used, by the business. This would include any specialized equipment, computers and accessories, office furniture and any other required materials or products needed for your business. If the total value of these items exceed the coverage of your home owners insurance for the contents of your home, you need business insurance.
If your business brings customers or clients to your home, you should, at the very least, have general liability insurance. With this type of policy, if your client or customer is hurt or injured while on your property, the claim will be against the business not your home.
If your home based business involves consulting services or any type of professional advice, professional liability insurance should be considered. With this type of policy, should a client bring a claim against your business to recover losses due to your advice, you personal property will be protected.
Another item to consider is your vehicle. If you use your personal vehicle for business purposes, it should be covered as such. The last thing your business needs is for you to get in an accident while making a delivery only to have your claim denied or worse, be accused of a fraudulent claim.
Lastly, if your business has you as it's only employee or simply cannot function without you at the helm, disability insurance is a must. This type of policy provide coverage for any wages you would lose should you become disabled and not be able to work.
Starting your home based business was a big decision. Protect it.
Get the peace of mind you deserve and money in your pocket you need by getting your insurance quotes today.
Article Source: ArticlesBase.com
