If you run a home-based business of some sort, such as if you operate a daycare facility or a salon out of your home, then it is important for you to understand and purchase commercial insurance. After all, despite the fact that you run your business out of your home, you might still find yourself facing many of the same challenges that others find themselves facing when running a business. If you are looking for a few helpful tips to help you get started, take a look at the advice that is listed below.
Don't Count on Your Homeowner's Insurance Policy
If you have a homeowner's insurance policy in place, you might not think that it is necessary to purchase commercial insurance for your home-based business. However, in many cases, homeowners cannot count on their homeowner's insurance policies to cover them in the event that there is a business-related claim. In fact, many homeowner's insurance policies specifically state this in the policy. If you aren't sure of what may or may not be covered in your homeowner's insurance policy, it is important to look into it before you count on your policy to cover you.
Consider Buying a Rider for Your Homeowner's Insurance Policy
Although you probably cannot count on your homeowner's insurance policy to cover business-related claims right now, this might not mean that you have to purchase separate commercial insurance. In many cases, you can purchase a rider to supplement your homeowner's insurance policy. However, this is typically only a good option for very small home-based businesses. If your business has a lot of liability (such as if you have an on-site daycare) or if you have a lot of expensive equipment, on the other hand, you will probably need a commercial insurance policy instead of a simple rider.
Make Sure You Have the Coverage That You Need
Lastly, regardless of whether you end up purchasing a rider for your homeowner's insurance policy or if you purchase separate commercial insurance, you should make sure that your business is properly protected. Many people choose to run their businesses out of their homes so that they can keep costs down, but one thing that you should not skimp on is your insurance. It is imperative to make sure that your equipment is protected and that you are covered in the event that a customer gets hurt on your property. The amount of coverage that your business needs will vary from what other business owners need, so assess your specific coverage needs.
If you own a home-based business, it is important for you to look into your insurance needs. Luckily, there are commercial insurance agents out there who regularly work with home-based business owners like you and who can help guide you in the right direction.
