Insurance For Home Business Owners
Among one of the challenges of starting your own business is remaining insured. There are several options for finding good insurance at an affordable rate, although other factors come into the picture as well. Here are some tips on where to start looking.
You should measure your home risks to determine what type of insurance you need. Most often, there are many risks involved since there are heavy business liability limitations. Your average homeowner's insurance falls short of protecting your home business. Here we add a disclaimer: we are neither insurance industry professionals, nor do we claim to provide professional advice. Please seek a qualified professional to talk with before acting on the advice presented here, to see if it is fitting for you.
A typical homeowner's insurance does not keep business liability coverage of any kind, such as premises liability. It will also only keep minimal coverage of business items taken off the property (don't count on getting reimbursed very much for losing your business laptop).
You need to have insurance to cover any gaps that may leave you wide open for no coverage at all. There are many ways to make errors, or assume that something is covered, or it is covered completely. You can reduce your risk by proper documentation, as well as buying the correct policy for yourself and your business. In particular, you should pay attention to what is business property and what is personal property. Oftentimes, your current homeowner's insurance will cover only personal items, so there is a good chance that most of your company's business items are not covered. If you're trying to save a couple hundred dollars a year by not opting for insurance on business items, or you're deluding yourself into thinking your personal insurance will protect your business, think again.
You can manage your risks better by doing certain things. First, you can make smart decisions that don't leave you in the wake. You should make decisions that are prudent, especially if you are not currently covered for your home business. You can take proactive steps such as reducing your inventory storage on your property, and shipping directly to customers. You can also incorporate your business to separate your personal items from all business items. Finally, you should also consult with an insurance agent to prevent any unintended gaps in coverage. Insurance agents will use the term retention for any item you are not insuring. You may also choose a higher deductable to save money on insurance.
You can also do things that will safeguard your possessions. For example, you may choose to put items in a safety deposit box instead of leaving them at home. Deposit any large cash and valuables from your business in a bank account instead of leaving them at home. Some other methods to self-insure may include backing up records and digital data. As a home business owner, you may be less risk averse than the average person, but you can still be prudent about protecting your assets!
by: Casey Trillbar