When you own a home-based business, you have to consider more than simply setting up shop and getting to work. Some people want to know if they should get home-based business insurance, and this can be a good option for many people. No matter where you run your business, there is the potential for losses that are unexpected. When you get a home-based business insurance policy, it will ensure that your business, your home, and more are protected. This type of insurance is different from a normal policy, and you have options depending on what type of business you have. Take a look at the top six reasons to get home-based business insurance.
1. General Liability
The first reason to get insurance for your home business is that it includes general liability. This protects your business from any liabilities that are a result of negligence both inside and outside of your home. This includes a client slipping and falling when they visit your home, as well as anyone suffering any kind of injury while there for business. When you include this insurance, you pay the premium and then you choose your deductible. It is common to have a $1,000 deductible with this type of insurance.
2. Product Liability Insurance
If you make products at home and sell them, this type of insurance will protect you. For example, some people make homemade soap or candles. In this case, someone could buy your products and develop a rash. This type of insurance will protect you. Your premium will depend on the types of products you make and the potential risks involved in them. You will also have a deductible in case of a claim.
3. Errors and Omissions Insurance
If you are providing professional services for other people, Errors and Omissions Insurance will protect you. This is important for a number of professionals, including lawyers, engineers, realtors, architects, and doctors. This insurance is mandatory, so if you are working from home, be sure to include it if you are in one of these professions. Your deductible can be significant, and it often ranges from $25,000 to $50,000. However, there are potentially serious consequences for making errors or omissions in these industries.
4. Workers Compensation Insurance
In different provinces, this insurance has different names. In Ontario, it is the Workplace Safety and Insurance Board, whereas in BC and Saskatchewan, it’s the Workers’ Compensation Board. This type of insurance is normally reserved for people in the construction industry. If you have any workers and they are injured on the job, they will be covered. You might have a farm that you operate at home, or a number of other home-based businesses that have employees who can suffer from an accident.
5. It Builds Trust
Another reason to have a home-based business insurance policy is that it builds trust with your clients. Some clients in certain industries may want to see your insurance records before they agree to work with you. They want to know that they are protected if anything goes wrong. Whether or not you have insurance could be the reason that they decide to work with you (or not). No matter what type of business you have, credibility and trust are important. Having insurance shows people that you are responsible and understand that you have an obligation to make sure that everyone is protected.
6. You Are Protected From Work Interruptions
You can protect your income with home based business insurance. If you have an accident or something happens to your home to interrupt your business, you can get interruption insurance that will help you pay your bills during this time.
