Must-Have Insurance Covers for Your Home-Based Business

Almost all business owners now appreciate the value of insurance. Even a seemingly harmless issue with your company can significantly cripple it and leave you counting losses, but the right insurance can lessen the damage. There seems to be an insurance cover for virtually everything these days. Most business owners can be confused as to what they need and the covers that are just a waste of their cash. Most startups now operate from their owners’ homes to negate the high expenses associated with renting or buying commercial space, and so some of them might assume that their business insurance could also cover their home.

The business owners, in this case, erroneously assume the homeowners’ insurance provider covers their company. They are unfortunately disappointed when something affects their business, and their insurer says this is not included even in the most expensive homeowners’ insurance cover. In fact, there are times when the business activities you run from your home will void your homeowners’ insurance. When running a company from your residential property, the following are the types of insurance that will prove essential for any issues that might affect your business.

Business Property

This is not a preserve of companies with big and expensive machines. Any damage, theft, or loss that affects even the smallest and cheapest of your machines will have a considerable impact on your company’s operations. Homeowners’ insurance will cover your equipment if it inside your home when damaged or stolen, as well as other home appliances and items, from the dishwasher to wooden hangers. Business property insurance, on the other hand, will cover your equipment when outside the house. You can thus have peace of mind when conducting any company activities outside your home.

General Liability

signing a contract

If a friend or relative visits your home but gets injured in some way, your homeowners’ insurance will cover his/her medical costs along with some monetary amount in compensation. If however, a business client suffers an accident in your home, your homeowners’ insurance will not cover this. The general liability coverage, in this case, will prove essential for paying out the clients injured in your home. It also includes the costs of injuries to you or your employees outside the house in the course of business activities.

Professional Liability

If your company is service-based, professional liability insurance is essential. This protects you and your client in case the latter suffers harm from your professional actions. The insurance will pay for your defense along with compensating the injured and thus shield your assets. There are several options for professional liability insurance. Malpractice insurance, for instance, will protect home-based medical practitioners along with animal trainers and hairdressers.

Errors and Omissions

When your business involves the giving of any form of professional advice to clients, the errors and omissions insurance is a must-have. This will cover any expenses if a client claims that your advice was incomplete or inadequate and led to some harm. Even if your advice is only provided online, this form of insurance is essential to protect you from these claims.

The above insurance types might initially seem like they are unnecessary expenses eating into cash reserves you do not have. They will, however, prove crucial when your company is faced with any claim. These home-based business insurance covers are thus among your best financial investments.