What to know about insurance if you are working from home.
The move from office to home as a result of the pandemic was quick and unexpected for business owners. You’ll want to wisely consider your risks and insurance needs that is unique to your business. When considering insurance for your home-based business, here are some questions to ask yourself:
- What type of business do I run?
- What is the value of my business assets?
- Do I have customers or business associates visiting me?
- Does my business have full-time or temporary workers? Interns or volunteers?
- Do I use my vehicle to conduct business operations?
The answers to these questions will guide which types of insurance to purchase—and how much coverage you’ll need. Before contacting an insurance agency, consider these types of insurance:
Property and Casualty Liability Insurance
Protect the value of your business property from loss due to theft, burglary, fire or other insured perils. First, include enough liability protection to cover costs if someone is injured as a result of visiting your business or using your product or service. Then, consider these options for your home-based businesses:
- Adding an “endorsement” to your homeowner’s policy (most cost-effective option) homeowners insurance
- Stand-alone home-based business insurance policies (limited availability in some states)
- A Business Owners Policy which combines several types of coverage. business insurance
Business Auto Insurance
Your personal auto insurance may provide coverage for limited business use of your car. But if your business owns vehicles or your personal vehicle is primarily used for business purposes, you’ll need business auto insurance. auto insurance
Workers Compensation Insurance
Strongly consider purchasing workers compensation insurance to cover costs if an employee is hurt on the job. Doing so, provides wage replacement and medical benefits to employees for bodily injury or disease in the course of employment, in exchange for relinquishing the right to sue the employer. In some states, workers compensation insurance is mandatory, so be sure to check your state’s workers compensation website for local requirements.business insurance
Other types of insurance may be suitable for your home-based business as well. Your insurance agent can help you determine your needs and select the correct insurance to meet your needs and budget.