Gone are the days when the only option is working in an office or business setting. Remote work, either as a hybrid situation or as a default setting, is more common than ever. Whether you are new to this type of work or you are just looking to make some adjustments to your work setting, one of the questions to ask yourself -- and have answered -- is whether or not you need business insurance when working from home.
What kind of businesses may need business insurance?
Let’s start with getting to the bottom of what types of work may possibly require business insurance.
If you are earning any amount of money from your home, then it’s important to have a conversation with your insurance agent. Some of the most likely people to need business insurance are those who sell products online (ex, Etsy), those who store inventory in their home (ex, Shopify), and anyone who has clients visit their home (ex, counselling or health service practitioners). You should also look into coverage if you have work-related equipment or supplies in your home (ex, computers and office furniture).
Even if you are only bringing in a small amount of money from your business, it’s a good idea to talk to an agent to guarantee there are no insurance coverage gaps.
Why is insurance important in home-based operations?
If you’re wondering this question, then you aren’t alone. After all, what is the harm that can come from running a simple small business out of your spare room?
The thing is, insurance is looking out for you in the unexpected situations that can occur with no notice. For example, a fire breaks out in your kitchen and spreads to your inventory area, destroying your stock. Homeowner’s policies typically don’t extend to a business inventory, even if it’s stored in the home itself.
Or, you have a client over to your home for a service or consultation, and they fall on the steps and injure themselves. Many policies would not cover liability costs from business-related activities.
Finally, you might also find out that you are “on the hook” for replacing stolen business-related equipment if you experience a home robbery.
What types of business insurance are there?
Since there are plenty of coverage gaps with homeowner’s insurance, you will find that there are a variety of choices for business insurance policies. A general liability insurance policy would cover property damage or injury. A business property coverage policy would cover replacement costs of equipment or inventory.
There is also professional liability insurance, which would protect you from lawsuits based on business errors or advice.
Lastly, there is a business owner’s policy (BOP), which would give you a “full coverage” choice if you want several of these protections.
When in doubt, don’t be afraid to reach out to your local insurance agent, like Harbour Insurance Services, and talk about your needs. Your agent will be more than happy to help you get just the right package for peace of mind!
Get a free quote or call us at (281) 520-4090 today.