Running a business out of your home can be a very convenient way to make money, but there are several things you should do before you get started. One of these things is to make sure you have enough insurance coverage for your home business. If you have a home insurance policy, it may provide some coverage, but a home insurance policy does not always offer enough coverage for a home-based business. Here are several things to consider as you purchase a policy for your new business.
Coverage for Your Property
The property of your business is separate from the property you own personally, which means you home insurance will probably not cover the business property if it were destroyed in any way. Therefore, you should make sure you have business property coverage for everything your business owns. This includes a computer and other electronics you use for the business, any inventory you have on hand, and any other items that are for your business.
Secondly, you should find out if your car insurance policy will cover your vehicle if you intend to use it for business purposes. Some car insurance policies will cover vehicles in this situation, but others will not. If your insurance will not cover your car for business use, you may need to purchase business vehicle insurance to make sure your vehicle is always covered no matter what reason you have for using the car.
If you plan on ever having anyone come to your home for business purposes, including the mailman or a delivery driver, you will also need to make sure your business insurance has liability coverage. Liability coverage is a unique type of coverage that provides protection to you for accidents that occur at your house. While your home policy may also include liability coverage, it may exclude coverage for anything related to your home business.
Business Interruption Insurance
One other type of coverage you should consider adding is called business interruption coverage. This type of coverage is designed to give you income during times where you cannot work due to the destruction of your house and business property. For example, if a hurricane destroyed your home and everything in it, this insurance coverage would offer money to you during the time you could not produce income due to this devastating event.
If you have questions about business insurance for a new home business you are starting, contact an insurance company today. Companies like United Counties Insurance Group can help.