COVID-19 has created an interest among many people in starting a home-based business. This would be different from just working remotely.
Did you know that there are over 26 million home-based businesses in the United States today? Many of the world’s most successful enterprises started out in garages as home-based businesses. Disney, Amazon, Yankee Candle Company, Hewett Packard, and Apple are just a few examples of businesses that started out of a home. 52% of all small businesses are home-based, and home-based businesses generated over $5 billion dollars in sales in 2019. Do you own and operate a home-based business? If so, you will want to read this important article.
Just because you don’t have a building or employees does not mean that you do not have the same risks as larger businesses. In fact, home-based business has just about the same risks as any other business, including protecting client information, providing incorrect advice to clients, client lawsuits, product injury, client injuries while conducting business at your home, property losses, and even auto losses.
Some home-based businesses have risks that other businesses do not. What if you become ill or injured and can’t perform your work? Who will step in? What if you die, do you have a contingency plan?
Don’t rely on your homeowner’s insurance to cover your business. Most, if not all, homeowner’s insurance policies will exclude your home-based business. The good news is that a home-based business insurance policy can cost as little as $150.00, depending on the revenue and the kind of business you have.
Here is a sample list of the coverages that you may need as part of your business owner’s policy.
- General Liability Insurance
- Business Personal Property
- Loss of Business Income
- Personal Advertising Injury
- Products and Completed Operations
- Professional Liability
- Health, Life & Disability
Insurance for small businesses provides protection and peace of mind in case of an injury, damage or lawsuit, and can protect important assets such as your home and family savings from being included in any litigation damages.