Home Based Business: Insurance for the Entrepreneur

If you run a home based business, don’t assume that your homeowner’s insurance will cover your business activities. In some circumstances, certain home based undertakings can invalidate your homeowner’s policy. Therefore, depending on the type of business that you run, you may need a home based business insurance policy.

What to Consider

Content insurance may cover a loss if it occurs within your home. However, if you travel with your laptop and it is stolen, your homeowner’s policy will not cover this loss. Another factor to consider is whether clients come to your home. What would happen if a client sustains an injury while visiting your home office? Also, do you have employees that are on your premises? This is another area where your homeowner’s policy will not cover your liability. Besides the obvious physical injuries, you must protect yourself against possible lawsuits that may come from either your employees or clients.

Your home based business is no different than any other business location. You run the same risk of loss regardless of your location. It is critical that you have your home based business properly insured.

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