When You Need to Insure Your Home-based Business
Do you have a home-based business? There are a few things you need to know about your insurance.
More and more, British Columbians are starting and operating businesses from their homes. This is terrific! However, what they may not know is how this may affect their home insurance.
It’s important to understand what is covered under your homeowner’s policy ensuring that you’re properly covered for your business activity. In fact, it may not be adequate, particularly if employees and clients are regularly coming into your home for business purposes.
Even if you have a part-time home business, you should consider home-based business insurance to make sure you and your business property are covered.
Should I insure my home-based business?
Whether or not you should insure your home-based business depends on what your business activities are. If you have a lot of high-value equipment and no clients or employees coming to your house, it may be less expensive for you to simply add your equipment to your existing home coverage as an additional endorsement.
If you do work for the government or other high-profile agencies such as working as an author, event organizer, HR consultant, marketing consultant, translator or for a non-profit organization, you may want to consider Errors & Omissions coverage, which can be required for some contracts.
Business-coverage is particularly necessary if you have visitors to your home for business purposes. It’s also important if you have to cover business inventory.
If you don’t have the added risks of frequent business-related visitors and inventory, the business coverage probably isn’t necessary. Your Broker will be able to advise you on the best course of action.
How do I insure my home-based business?
Home-based business-coverage is available as an extension of your home insurance. However, if your business is larger than the typical one to two-person home-based business operation, you may need to consider standard business insurance.
Your Broker will be able to advise you as to what you need for your particular situation.
Benefits of a home-based business insurance plan
An insurance plan for your business will cover your office equipment, business inventory on and off-premises, and business interruption insurance if anything were to happen to your home because of an insured loss.
Most importantly, it will cover you for additional liability for clients, delivery personnel and employees.
Do you have questions about home-based insurance coverage? We can help – CONTACT US to learn all you need to know about keeping you and your business protected in the event of a loss.