Home-Based Business Insurance
In the same way that auto insurance is essential to protecting your financial interests in the event of an accident or unexpected damages, business insurance allows you to protect your assets and income when it comes to costs associated with property damage, equipment loss, and liability claims. If you are a business owner, you definitely don’t want to pay out-of-pocket for costly damages or legal claims. Such circumstances could be the undoing of your company. No matter what kind of business you own, make sure you have comprehensive coverage that meets your specific needs. If you need help getting started, don’t hesitate to reach out to AZCAL Insurance Services. Our Arizona-based independent insurance agency offers coverage and risk management solutions for companies of all sizes.
Do you own a home-based business? Wondering what business insurance looks like in this situation? Continue reading to learn more!
What is Home Business Insurance?
Getting insurance for a home-based business is different from a standard homeowner’s insurance policy. If you run a business from home, but are depending on your homeowner’s insurance policy to cover matters related to your business, then you have put yourself in a risky situation. While a homeowner’s insurance policy will protect your home, it doesn’t not apply to your business dealings including items such as technology, files, professional equipment, etc. Depending on the nature of your business, going without business insurance coverage might not be worth the risk. Additionally, a homeowner’s insurance policy will not cover legal liabilities related to your business.
In short, getting home business insurance is simply making sure you have a business insurance policy in addition to your standard homeowner’s insurance policy.
What Are the Benefits of Home Business Insurance?
As already mentioned, home business insurance is beneficial because it protects your financial assets in case your home-based business undergoes unexpected damage or you face any type of lawsuit.
Additionally, if you are using your home for a business that your home insurance company doesn’t know about, then you could end up nullifying your homeowner’s personal liability coverage. This unnecessarily puts your home and business at risk. Having separate insurance policies for your home and business ensures you protect both your home and business when the unexpected happens.
How Do I Know If I Need Home-Based Business Insurance?
The size and scope of home-based businesses can range drastically. Someone’s home-based business might consist of freelancing writing services without additional employees. In this case, business insurance probably isn’t necessary. However, another home-based business might manage large stocks of inventory and employee people remotely and/or onsite.
If you are wondering whether or not you need home business insurance, you should ask yourself the following questions:
- Do I use my home to host customers or clients?
- Do I use my home to store inventory and other business-related materials?
- Is my business dependent on my home? In other words, if my home was damaged for some reason, would my business have to be put on hold?
- Do I employ others either remotely or onsite?
- Do I use my computer to manage client or employee records?
If the answer to any of these questions is “yes”, then your homeowner’s insurance policy might not be sufficient to protect your home-based business’s financial interests. You should definitely speak with your insurance provider to determine what type of coverage you need.
In short, you don’t want to be without coverage for your business when it comes to the following circumstances:
- Property damage
- Lawsuits
- Injuries to employees
- Anything related to client/employee data loss
What Kinds of Businesses Need Home Business Insurance?
If you are still wondering if you should get business insurance for your home-based business, then perhaps a few examples will help you determine this. The following types of businesses should probably look into getting business insurance in addition to their homeowner’s insurance policy.
- Web Design Firm – A web design firm run from home will likely depend on expensive business equipment like computers and specialized design software. Additionally, even if the majority of business occurs online and not in-person, a web design firm will probably manage client files and have a furnished home office. In the event that your home undergoes flooding, a power surge, fire, or something else, a business insurance policy will provide coverage for the items related to your business.
- Interior Decorator – If you are an interior decorator that welcomes clients to your home for business purposes, then you should probably get a business insurance policy. This will cover any legal liabilities in case a client is injured and you are held responsible.
- Photographer – Similar to a web design firm, a home-based photographer will likely have a studio with expensive lighting equipment, props, cameras, etc. Additionally, a photographer with a studio will probably host clients for photo shoots. Having a separate business insurance policy will ensure coverage for the equipment and any legal liabilities associated with a client injury onsite.
Contact AZCAL Insurance for Your Business Insurance Needs
If you own a home-based business and you’re not sure what type of insurance you need, contact AZCAL Insurance Services today! We are an independent insurance agency that can offer a customized insurance plan at the most affordable cost. Our team will provide excellent service from start to finish while answering every question you might have. Don’t leave the future of your business up to chance. Make sure you have essential coverage to protect your business’s financial interests.