Home-based workers are on the rise, according to Bloomberg Businessweek. If you fall into this trend, take a look at these simple tips to ensure your home business is properly protected.
1. Check your Homeowners Policy: Your business may be protected under your homeowners insurance; however, it may not be enough. Many policies only cover up to $2,500 for business equipment in your home. Plus, a stolen business credit card or lawsuits involving your business are not covered.
2. Get Appropriate Coverage: You can look into adding a home business endorsement to your homeowners policy, you can purchase numerous individual business insurance policies to cater to the specific coverages you need or you can buy a business owner’s package policy that is designed for small businesses.
3. Run a Day-Care from Home? Purchase Liability Insurance Specifically for Your Business: Your homeowners liability policy does NOT cover your home day-care business. Purchasing an occurrence policy is the best way to stay covered if a child gets injured. Also, accidental/medical insurance covers injuries that are not due to negligence.
4. Don’t Forget Auto, Health or Workers' Compensation: If you use a vehicle to run errands for your business, you may need a separate business auto insurance policy. Health and disability insurance may be a smart purchase in case you become sick or injured and can’t work. If you hire employees, you should consider worker’s compensation insurance.