If you are running your business from home whether part time of full time, you should take home business insurance. This is because your business is not covered by your homeowners insurance and you may end up suffering losses. For instance if a delivery person is injured while bringing you a business parcel, your homeowners insurance does not cover you and you may end up paying a lot of money. Home business insurance provides protection on your business depending on the kind of policy you have taken.
Below are three types of policy that you can use.
A rider to your homeowners insurance policy
You can include an add-on in your homeowners insurance or even renters policy to insure your business. This is a cheap solution because it costs about $100 per year to get additional coverage for about $2,500. Due to its low coverage, it is suitable for a small business that does not have many valuable types of equipment or many business visitors. You should also not suffer a lot of loss if you are not in a position to operate your business for a while due to a disaster.
In home policy
An in-home business policy has more coverage than the rider does on homeowners policy. The insurance rates range from $250 to $500 with coverage of up to $10,000. It provides coverage for theft even for business equipment and liability for injury. It also covers up to three employees. Some of the coverage provided is in loss of crucial documents and theft of money when being taken for banking. This policy is suitable if you are in a home based business that is more serious especially if you have people coming in and out of your home. It should however be a part time or a low revenue business due to the low coverage. When taking the policy, you should get the one suitable for your business in your state. States have their rules about insurance coverage provided to home based businesses.
Business owner’s policy
The policy is suitable for a large business that needs coverage of more than $10,000. Other Business owners who do not run their business at home also take the policy. Some of the coverage provided by the policy includes loss or damage to the business equipment and other business assets, liability for injuries to customers and employees, losing critical records, professional liability or malpractice claims and even loss of income. It also protects the business against interruption due to a natural disaster or power outage. It might also provide protection when you are driving a personal car for purposes of business. This home business insurance policy has a higher coverage than the rider on homeowners insurance or in-house policy. Due to the diverse nature of businesses, each business should take a business insurance that is suitable for it.
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