7 Reasons You Need Business Insurance for Your Home-Based Business
Health insurance, auto insurance, and life insurance are all important types of insurance that protect your assets in the event of illness, car accidents, or death. Yet, if you own your own home-based business, you may not have considered that you need to protect your business assets with business insurance too – because they’re likely worth more than what you have invested in them, and they’re also more vulnerable to financial threats than any other physical items in your life. Here are seven reasons why it’s important to consider commercial business insurance if you own your own home-based business.
Do I need business insurance?
To protect your home-based business from limited financial protection, you need to make sure that your personal assets aren’t at risk. Some people mistakenly believe they already have coverage through their homeowner’s insurance policy, but if you’re not running a home-based business out of your home, those policies don’t cover business equipment or losses. Check with your current insurer about adding extra coverage for these types of assets. If you haven’t yet purchased insurance and are starting a business in an area where business insurance is recommended, consider these seven reasons to get covered . For example, do you have employees? A home-based business can put a lot of pressure on finances. Protecting yourself against liability issues could save you money down the road. Insurance isn’t cheap, but without it your small business might fail before it gets off the ground. That makes it worth researching costs and shopping around for affordable options.
How much does business insurance cost?
According to State Farm, a small business can expect to pay an average of $1695 per year on general liability insurance. So before you get started in your home based business, or if you want to expand your current home-based business, here are 7 reasons why it’s crucial that you protect yourself with some sort of coverage (like commercial insurance). General Liability This is one form of commercial insurance that’s typically required if you are going to be conducting business in your residence. If someone gets hurt while on your property and it’s determined that you were at fault then General Liability may cover any costs associated with those injuries. Example: Let’s say a guest comes over and trips over a chair. He injures his knee and requires medical attention.
What should my business policy cover?
Do you have public liability insurance? It’s a vital part of your business policy, since it protects you from litigation. That’s when people bring claims against you—for example, they slip on a spilled drink in your restaurant or they fall off one of your chairs at your barbershop. Many home businesses need public liability coverage, as well as worker’s compensation and property insurance policies. Commercial insurance policies can cover all that and more! No matter what kind of business you run out of your home, it’s crucial to have some type of policy to protect you financially. Talk with an agent about commercial insurance plans today. State Farm® agents are independent contractors who sell State Farm® products. Not all agents are licensed to sell all State Farm® products in every state. Agents may not be licensed to sell life insurance or annuities in your state.
What are common business insurance claims?
Not all business insurance claims are big and flashy. Just because your small business doesn’t make you or anyone else rich, that doesn’t mean it’s not making money. In fact, home-based businesses can be a lot like a family: They’re often filled with love, warmth and security—and when something goes wrong, everyone feels it. If someone trips in your store or at one of your events and gets hurt, your commercial insurance will kick in to help cover medical bills (and pain and suffering if applicable). If you have a retail space or professional service office where people are coming and going on a regular basis, then general liability insurance is essential. You’ll also want workers’ compensation insurance if you have employees working under your roof, and many states require that employers carry coverage. If anything happens to them while they’re there, taking care of their families in case they get seriously injured or die is part of doing business responsibly. But those aren’t even close to being all of the reasons why commercial insurance matters for a home-based business owner; keep reading!
Tips to get the best value on your home-based business insurance policy
business insurance state farm car, business insurance state farm renters insurance, commercial insurance coverage in houston, texas Title: How to Get Great Value on Your Home-Based Business Insurance Policy Title: Questions to Ask When Shopping for Commercial Insurance in Houston and Other Areas Around Texas: Answering Important Questions About Property Coverage and Liability and more. For example, commercial insurance policies differ greatly from one another depending on what type of protection you’re looking for. It’s a good idea to ask about things like property coverage and liability when shopping around for commercial insurance in Houston or other areas around Texas. Make sure you understand exactly what is covered by your policy so that you can protect yourself from potential financial disaster if something goes wrong at your home-based business.