There are approximately 18 million home-based businesses in this country, and well over half of them are risking the future of their businesses but have no idea they are at risk. Many home based business owners simply do not have enough business insurance coverage.
You may be among the many entrepreneurs that mistakenly believe they’re covered by their homeowners insurance, but most homeowner’s policies limit loss of business property to $2,500, don’t cover losses away from the home, and exclude liability coverage for business-related activity.
Insurance policies do vary so you will want to find yours and read the fine print.
Even though your business is in your home, you still have the same risks as some of the bigger traditional businesses. Many work-from-home enterprises have lots of computer equipment, software, printers, office furniture, telephone equipment, products and irreplaceable files, paperwork and the list goes on. If you travel away from home on business you could be caught on the road with business checks you’ve collected, your expensive laptop, cell phone, products and other business supplies. If your rental car was broken into and you lost everything, would you be covered?
There are also the issues of liability. If you see clients in your home and they slip and fall on your icy sidewalk are you covered? Or what if something you produce and sell from home injures someone? All business owners should be asking these questions and getting answers. You could easily lose everything in one fell swoop if you find yourself without the proper business insurance.
Here are a few actions you should take to avoid unnecessary risk and loss:
1. Take an inventory of all your business equipment. Include photos of everything you have and a written statement of value. Include receipts of actual purchase with this file whenever possible.
2. Evaluate how often you see clients in your home? Are there any possible hazards?
3. Where would your business be run from in the event you lose your home to fire or other natural disaster? Develop a disaster recovery plan to minimize the interruption of business should disaster strike.