BUSINESS INSURANCE
Home Based Business Insurance
What to Consider if you are Running your Business from Home
If you own a small business and run it from home, there are many things to consider. One of the primary considerations is something most business owners tend to overlook; small business insurance. If you run a business out of your home, here are some things you should know.
What Does Home Insurance Cover?
Your home insurance policy may provide some coverage depending on the type of business, but it is minimal. There are two specific parts of your home or renters policy to which you should pay particular attention:
Personal Property
Under most home insurance policies, there is coverage for business property up to $2,500 on your premises and $500 for any business property off the premises. This means that if you have a storage unit, for example, where you store inventory or any other business supplies, you may only have $500 worth of coverage. This can be an issue if you have any business property that total over these amounts.
Home insurance policies will also not cover business data. So if you were subject to a data breach where your customer’s information was compromised, there would be no coverage.
Liability
One of the most significant coverage gaps that can exist for business owners without small business insurance is liability. Homeowners insurance provides bodily injury or property damage coverage for which you are legally responsible but only as it relates to personal liability. Most home insurance policies will specifically exclude business liability. For example, let’s say you are making and selling baked goods out of your home. If one of your customers gets sick and sues, business liability is what would cover the costs of your lawsuit.
Business liability is what would also protect you if a client comes to your home and slips and falls on your property. Homeowners insurance may not cover this type of loss, which can be potentially financially devastating to you and your business.
What Type of Insurance Do I Need For My Small Business?
The type of business you run and the exposure it presents will depend on the specific insurance policies you will need. However, at a minimum, all small business owners should consider the following commercial policies:
General Liability
General liability insurance will cover your business for any bodily injury or property damage that it may cause to another party. This includes the scenarios presented above with a customer getting ill from a product you sold or a client slipping and falling on your property. General liability policies will also cover business from advertising injury, or things like libel and slander.
Workers Compensation
Workers compensation insurance is mandatory in most states if you have more than a certain number of employees. But it’s also a really important part of running a small business. Workers comp will cover any injuries to your employees if they are injured on the job and provide some wage reimbursement as well. It can also help in protecting your business from being sued for these types of injuries.
Professional Liability
If you are routinely giving professional advice or recommendations to clients, then you may need a professional liability policy also. Professional liability covers you for any potential lawsuits against you or your business for mistakes or inaccurate information given to customers, whether real or perceived.
Cyber Liability
A cyber liability policy is necessary for any business who handles customer’s confidential information like social security numbers, credit card information or health records. This policy will cover your business from any lawsuits that may occur due to data breeches.
How Do I Learn More?
While it can be tricky to navigate these different types of insurance policies, you don’t need to worry. Our experts are licensed and ready to help. Contact The Craven Agency for all your home or small business needs!
Contact The Craven Agency today! Serving Shreveport, Bossier City, Minden, Ruston, Monroe and the surrounding communities in Louisiana and the Ark-La-Tex regions.
- Business Interruption Insurance
- Business Interruption & Extra Expense Insurance
- Business Owner's Policy (BOP)
- Business Personal Property (BPP)
- Commercial Crime Insurance
- Cyber Insurance
- Employment Practices Liability Insurance (EPLI)
- Home Based Business Insurance
- Professional & General Liability Insurance
- Surety Bonds
- Worker's Compensation
QUESTIONS?
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