The pandemic affected many businesses across various industries, but it also led to many individuals creating their own companies. While many employees were embracing remote work for the first time, other professionals were looking at ways that they could scale their side hustle or create a company where they can work from home.
Of course, COVID-19 led to a massive increase in home-based businesses. This now begs the question: How can you ensure that your business assets are protected? What EXACTLY does your business insurance cover, and how much does home-based business insurance cost? What policy makes the most sense for you?
Too many people don’t seem to realize that risks resulting from their home-based businesses are not covered under their other policies. Here’s why entrepreneurs may want to consider purchasing home-based business insurance as soon as possible.
Why Buy Home-Based Business Insurance?
Business owners might have created a business where they started selling products and services during the pandemic, but they haven’t truly organized it professionally. However, business owners should consider home based insurance cost and factor it into their startup costs.
How do you know whether you need home business insurance coverage? There are many situations where home business insurance coverage is necessary:
- You carry inventory for the products that you sell in your home.
- You carry inventory for your services in your home.
- You own business equipment that could be at risk for either damage or theft.
- You have vendors coming to your home to conduct business.
- You have clients coming to your home to conduct business.
Many people often start selling products or services without going through the time and effort of setting up something more formal, like an LLC. Regardless, home based business insurance can still offer many benefits.
What Businesses Need Home Based Business Insurance Coverage?
There are countless organizations that pay for business insurance every year, knowing that it’s important when it comes to mitigating risk and protecting your assets. Entrepreneurs might think that they don’t have to think about home business insurance cost if you are selling T-shirts out of your house or selling jewelry, or involved in graphic design, coaching, fitness – but they would be wrong. In all of these industries, home business insurance coverage can be beneficial.
A home business insurance policy can cover crafters for liability insurance. Let’s say that you own a business that sells ceramic products, and keep the inventory in your home. If there is a fire that ends up destroying your products, your homeowners policy will more than likely not cover the cost of these products. However, home-based business insurance can protect your business assets in incidents like this.
You may also consider property insurance that is available to professionals with limits of up to $5000 and $10,000.
Making It Easy
Home-based business insurance doesn’t have to be complicated. Policy forms also include General Liability limits of up to $1 million, and Professional Liability limits of up to $2 million. The General Liability policy includes blanket additional insured and blanket waiver subrogation endorsements.
Contact LG Insurance about a home-based business insurance policy.
