If you're opening a home business, you may be wondering about how to procure insurance coverage and what insurance options are available to you as a work at home business owner. The answer is that there are many different types of insurance you might consider to protect your home office and your business. Some of the types of coverage available to protect your home business include:
Business Property Insurance
If items in your home are being used for home business purposes, such as a computer, printer, etc., they are no longer covered by homeowners insurance. You will need to get business property insurance in order to protect any items in your home that are used for your business. Two types of business property insurance are available: actual cash value or replacement cost coverage. Actual cash value coverage will pay you whatever your used items were prior to their damage or destruction. This will give you significantly less compensation than replacement cost coverage, but also comes with lower premiums.
If you have an at home business, homeowners insurance will not cover any injuries caused to people who visit your home for business purposes. If, for instance, a delivery person somehow breaks their arm while delivering you a business related package and demands compensation, your homeowners insurance will not cover the injury; business liability insurance will.
Product Liability Coverage
If your business is one that provides products to customers, for example a baked goods or cosmetics at home business, you will need to get product liability coverage. This insurance will cover any damages caused by your product. If, for instance, someone has an allergic reaction to your product and sues you, product liability coverage will handle the claim.
Business Automobile Coverage
You might think that you don't need business automobile coverage if you don't have a vehicle specifically designated for business use, but this is incorrect. If your personal automobile is involved in an accident while performing a business function, for example making a home delivery or picking up a package, it is not covered under your personal auto policy. You will need business automobile insurance to cover situations like these. If you use your automobile for any business related function whatsoever, you must have business automobile coverage.
As home businesses grow increasingly popular, some insurance providers have begun to provide home insurance and business insurance as a package deal. This does not necessarily mean that you're getting a better deal by getting home insurance and business insurance as a bundle, however, so do your research and compare prices prior to purchasing package insurance deals.
Depending on the services, or products which your business provides and the assets which it uses, different insurances may be needed. Some combination of the above listed insurances should ensure your business is well covered.