Starting a business in your own home can be an exciting and daunting task. With all of the work that goes into opening a company, it can be easy to overlook some of the small, but important, details - like properly protecting it with insurance. It might surprise you, but your home-based business is not covered by the insurance policy that covers the home it is based in. Read below to find out 5 important things to keep in mind when deciding how to best insure your home-based business.  


  1. Most home-based businesses have little or no coverage from a home insurance policy.

    While your home insurance policy does protect the physical structure of your house, it does not protect your business files, equipment, or any people that work for your business while in your home.  In fact, using your home for a business without properly informing your home insurance provider can result in your home insurance policy being invalidated. So, if you are planning to operate a small business from your home, it is important to invest in a business insurance policy that is appropriate for your company, in addition to your home insurance. The investment could save you a lot of money in the long run.

  2. There are several types of insurance that will protect your home-based business.

    There are several options to consider when choosing how to insure your home-based business and several policies that insurance companies offer. The first, and least expensive, is a rider to your homeowner’s or renter’s insurance policy. This expands your policy to cover your company -- usually with about $2,500 of coverage. It is best-suited for a one- or two-person company with little business property.

    Another type of policy to consider is an in-home business policy, which provides up to $10,000 in coverage for your business equipment and protects your business if something happens to a separate part of your home that results in damage to company property. These policies are best suited for very small companies with some equipment.

    A final type of insurance to consider is a business owner's policy. These policies are best for bigger businesses, especially if they operate in more than one location. This policy covers equipment, property, loss of income, and liability. 

  3. There are certain rules you have to follow, even though it’s your own home.

    When you insure your home-based business, it is important to remember that your home is now a place of business, in addition to the place you live. Therefore, there are rules and regulations you will need to follow to keep your business safe and compliant with insurance policies. For example, you will need to be sure that your business follows all health codes, laws, regulations, and statutes required by your insurance policy. You must also follow all employment laws. It might be tough to remember to enforce so many rules in your own home, but it’s important to remember that your home is also an office.

  4. Simply insuring your business and property might not be enough coverage.

    You may need to look into other types of insurance to protect different aspects of your business in addition to your physical property. General liability insurance will protect your business if it causes damage to another person or person’s property and may be a good choice if you have people visiting your home-based business – customers, collaborators, or even delivery-people.

    You might also consider professional liability insurance, which protects your company if you are sued for negligence or an error on the part of your company and is recommended for any business that serves clients. Finally, you might want to consider product liability insurance, which protects your business if a product it supplies, designs, or manufactures causes damages to a person or property.

  5. You might need to insure your car, too.

    Your personal car insurance policy does not cover your car if you are using it for business purposes.  You might consider getting a business auto insurance policy if you make deliveries, pick up packages, drive or visit clients, or allow employees to use your car for company purposes. A business auto insurance policy will protect your car in case of an accident or damage to property, whether it belongs to you or someone else.

If you have any questions about what type of Moose Jaw insurance you need for your small home-based business, please call us at 800-667-7640.

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