Do you need to change your insurance when setting up a home-based business? You absolutely do, but the process doesn’t have to be intimidating. When you set up a home-based business, your risk factors are changing. You will need additional coverage. But Atlanta’s home-based businesses are thriving today and many people are interested in getting started. Here’s what you need to know.
Do You Need Additional Insurance as an Atlanta Home Based Business?
If you’re just working from home for your business (you have a home office), that isn’t the same as running a home-based business. A home-based business is a full business that’s running out of your home, which means you’ll need business insurance. That business insurance is going to cover:
- Your inventory. Anything that you’re purchasing for resale or that you’re going to use as materials for a product needs to be covered.
- Your computers and equipment. Most home-based businesses are going to require some extensive equipment, ranging from a simple laptop to complex screen-printing machinery.
- Your clients. If customers are coming to your home, they could get injured. You will need liability insurance to cover potential accidents.
- Your liability. Liability insurance, in general, is important; you could get sued or be negligent in doing business.
So, you do need insurance for your home-based business that is separate from your homeowner’s insurance even if your business is being run out of your home. There are additional risks and potential expenses. But because every business is unique and individual, how much insurance and what types of insurance you need may vary.
What Types of Insurance Might You Need for Your Home Business?
Just as homes have property, liability, fire, and flood insurance, home businesses have different types of insurance, too. These include:
- Your homeowner’s insurance rider. First, your insurance company will need to know that you are running a business out of your home. Though you may need additional insurance, your homeowner’s insurance will also need to be modified. This is because a home that has a business in it does have an inherently different risk profile. But usually, this isn’t major. You may get some additional, small protection from your homeowner’s insurance, but you usually need more.
- An in-home business policy. This is an insurance policy specifically designed for people who are running a business inside of their property. It can be added as an endorsement to your existing homeowner’s insurance but will be more involved than just modifying your existing insurance policy.
- Business owner’s policy. This is the type of insurance policy that any business owner might have, protecting themselves from property damage and liability. After all, even if your business is in your home rather than another building, it’s going to need some very similar coverage.
Additionally, you might need:
- Commercial auto insurance. If you’re driving a vehicle for your business, you shouldn’t be doing it against your personal auto insurance. In fact, you might even get a claim denied if you do get into an accident.
- Professional liability insurance. Also known as errors and omissions, this protects you in the event that you make a mistake. For instance, as a consultant, you could give someone negligent advice. Everyone makes mistakes sometimes.
- Workers compensation insurance. Every business with employees needs to pay into workers’ compensation insurance. This is something that you should address when you’re determining your payroll and other issues.
You can’t always know exactly what type of insurance you need for a home business without talking to a professional. But an agent can help. Contact us today to find out more about what you need and to get a quote.