What Insurance To Buy For Your Home-Based Business
You know the story about big companies now that started in the garage? Like Jeff Bezos building Amazon out of his garage in Seattle? Or how Apple’s first computers were built in a garage in California? You don’t necessarily have to have a garage to build a business but you can always start a business from home.
What Is A Home-Based Business?
No, it is not the same as working for a company where the main office has a specific location and you are working from home as an employee. Having a home-based business means you are your own boss, you are the owner of your company and your business is simply located in your home. Home and business is where the heart is.
Having a home-based business have some advantages – there is plenty of flexibility, lower costs as compared to renting an office space – as well as some disadvantages such as possibly no work-life balance. So not all businesses are suitable to be home-based business, do give it a good thought before deciding if your business were to be located in your home.
And the question that you have been wondering,
Should I Buy Insurance For My Home-Based Business?
Business insurance is necessary for several reasons, mainly to cover the cost of any possible claims made against the business. There are a few things to consider before you make the decision to purchase a policy to protect your business:
Any business inventory or supplies that you keep at home
Having employees working in your home
If your customers go to your home
Keeping customers and clients records in your home
Ask yourself these questions as it is highly recommended to purchase business insurance if most of your answers are “yes”.
Just keep it in mind that although you have homeowners insurance, your homeowners policy will not cover anything relating to your relating your business.
Which insurance does my business need?
Business Owners Policy
Depending on your business size, a small business owner may find an affordable policy like this suitable. A standard Business Owners Policy (BOP) provides property and general liability coverage where your business operates. For example, if an unforeseen fire happened, the BOP can help you with your loss of income.
General Liability
Accidents can happen any time, anywhere, including in your home. You may also be sued if your customer slips and falls in your home, where your business is located. If your business accidentally used a third-party idea for advertising, having general liability insurance is wise. This insurance can help cover any lawsuits that may arise. Hence, general liability insurance is to protect you and your business.
Workers’ Compensation
Workers’ Compensation laws differ by state. In New York, New Jersey, and Connecticut, businesses with one or more employees must purchase workers' compensation insurance. This insurance safeguards both employees and the business. Injuries can occur unexpectedly, and the injured employee can receive financial support, including lost wages. This assistance helps reduce the financial burden on both the employee and the business.
Inland Marine
If you are an independent contractor running your business from home, you can consider purchasing inland marine insurance. This insurance protects the tools, materials, and equipment you keep in your car or truck for work. It also covers any data you may have. If any losses occur while your goods are in transport, inland marine insurance can help cover them.
How do I know which insurance to purchase?
Many businesses can be run from home. Each type of business has unique needs and coverage requirements. Blue Rock is here to provide you with the best recommendations at the most affordable price. Contact us at (718) 886 6601 or fill out the form below to discuss the necessary insurance your business needs.
