Home-based businesses can offer the best of two worlds; working from home and earning a living. In fact, over 50% of small businesses are run from homes. But there are risks in operating your business from your home. Most home-based businesses do not have the same risks as other businesses including buildings, employees, production machinery, or fleets of vehicles. But, home-based businesses do have many risks that need to be considered.
Hidden Risks For Home-Based Businesses
- Homeowner’s or renter’s insurance does not cover any home-based business risk; you need a separate business policy. Your homeowner’s insurer may offer an endorsement to your homeowner’s policy that adds additional property coverage and some limited liability coverage.
- Your personal auto policy may not provide coverage if you use your vehicle for deliveries or ride-sharing.
- Your home-based business will need business or commercial insurance, and may even need professional liability.
- If your business has other remote employees, you might consider employment liability insurance.
- If you keep any kind of client information on your computer, you will need cyber liability insurance.
- If you have clients come to your home, you have a trip and fall exposure that business insurance can cover.
Business owner insurance for home based businesses, also known as a business owner’s policy or BOP insurance, combines general liability coverage with protection for your business equipment such as computers, printers, copiers, and office furniture.