Many entrepreneurs operate their businesses from home, and they often rely on their homeowners’ insurance to protect their businesses. While homeowner’s insurance protects your home, it may not insure parts of your business. As a result, you may need additional business insurance in Canfield.
If you work from the comfort of a home office, business insurance may be the last thing you’re thinking about. But what you may not know is that most homeowners’ insurance policies don’t cover losses suffered by a home-based business, which can lead to unexpected legal expenses, damages to your company, and costly claims.
Self-employed professionals who work from home may forgo purchasing business insurance in Canfield because they think their homeowner’s insurance policy provides enough coverage, are concerned about premiums, or don’t think it’s necessary.
But in most cases, buying an insurance policy for a home-based business is relatively low-cost, and is an important protection that can provide peace of mind for you and your clients.
Here are three reasons to consider home-based business insurance in Canfield.
1. Liability: Anyone you do business with can suffer an injury while on your property. Having to cover third-party medical expenses yourself could hurt both your business and your bank account.
2. Equipment: Business supplies, equipment, or inventory that are lost as the result of a natural disaster won’t be covered by your homeowners or renters policy.
3. Legal: Typical home and rental policies probably won’t cover unexpected legal expenses that relate to your business, such as claims of libel, intellectual property theft, or negligence.
Home-Based Business Insurance in Canfield
Here are four options home-based businesses should consider.
1. General liability insurance: This offers protection from a number of claims including unintentional damage to your automobile or property, claims of slander or liable, and the cost of defending lawsuits. Most business owners carry general liability insurance regardless of where they are based, and as an independent contractor, it’s important to have a form of general liability protection to safeguard your livelihood.
2. Rider to a homeowners’ or renters’ insurance policy: Riders are low-cost options that provide limited added coverage. And depending on where you live and the options available, a rider may provide a small amount of protection for business equipment and liability coverage as well.
3. In-home business policy or endorsement: An in-home business policy offers extended liability insurance and coverage. Specific coverage for these policies will vary depending on the insurer you work with, but most include reimbursement for the loss of important records, off-site business property, and accounts receivable.
4. Business Owner’s Policy (BOP): A BOP provides more comprehensive coverage and combines a number of different policies. It will protect your business in the case of an interruption such as a natural disaster or power outage that could damage your business equipment or data. It will also protect against malpractice or professional liability claims.
As an independent contractor, home-based business insurance is just one type of insurance you should consider. By protecting your business against various responsibilities, you are protecting yourself and your future security. For more information regarding your options for business insurance in Canfield, contact us today!