Millions of men and women work from home or have home-based businesses, according to statistics from the U.S. Census Bureau, a trend that’s been steadily increasing in recent years. Small businesses are a huge growth sector in the U.S. as well, accounting for more than half of all U.S. businesses, says the Small Business Administration. Still, despite the prevalence and popularity of the home-based business model, many business owners don’t have adequate insurance to cover their losses or their potential liability issues, and that means those owners are taking a huge financial risk every day.
Unfortunately, many men and women who operate a home-based business incorrectly assume their homeowner’s insurance policy provides more than enough coverage for their needs. But the fact is, they couldn’t be more wrong. Homeowner’s policies are designed to protect personal assets and the home itself, but they don’t have important coverage for business equipment or inventory, nor do they provide critical liability coverage that can protect you if a client, customer or employee becomes injured while conducting business in your home. That means if a client trips on your front steps or falls down the stairs, you’ll be responsible for any resulting medical costs or other related expenses.
So what type of insurance should you have to protect yourself, your business and your finances? For most home-based business owners, one of these two options usually suffices:
- Some very small home-based businesses can get by with a rider on their existing homeowner’s policy. A rider provides additional coverage for items or activities not covered under a standard homeowner’s policy. Depending on your insurance provider, you might be able to obtain additional coverage for certain types of business equipment or limited liability claims. In most cases, a rider is only a good option for business owners who have no other employees and who don’t have clients or customers coming to their homes.
- Most home-based business owners will benefit from the added protection provided by a business owner’s policy or BOP. A BOP offers protection against damage or losses of equipment, business interruptions, liability and professional malpractice claims. Any business that has costly equipment or inventory or one that conducts business inside and outside of the home typically can benefit from these higher and more comprehensive levels of coverage.
The type of coverage your home-based business needs depends on lots of factors. Basi Insurance Services is a leading provider of insurance policies for home-based business owners in and around Oakdale, Calif., because we understand the unique risks these businesses face, and we also take the time to review every client’s needs to ensure they get the right amount of coverage at a price they can afford. To find out how insurance can help protect your home-based business, call Basi Insurance Services today at 877-590-4826.