Streetsmart insurance Blog
Starting a business at home can be an exciting experience especially if you’re a beginner in this field. There are plenty of things to study and a lot of lessons to learn throughout the process but it usually pays off in the end. One of the things that you need to focus on as a new business owner is your insurance policy. Since you are starting your business in the comforts of your home, it’s easy to assume that it will also be covered by your standard homeowners insurance policy, but that’s not the case.
To begin with, a standard home insurance policy will not cover your inventory, equipment and everything related to your business. The first thing that you need to understand is that the coverage limit might not be enough to protect anything that is business-related. Moreover, it will not cover your business liabilities such as an injury that your client or business-related personal incurs within your home. In the event of theft, it will not replace any business-related property within the house.
Because of these gaps, your situation is at risk and it’s likely that you’re going to have out-of-pocket expenses if there were a claim. There are some ways that you can solve these issues, however, depending on the kind of home business that you have. For example, if your business is small and you’re the only one behind it, your insurer might offer you a policy that gets you additional coverage that includes your small business.
However, if you start expanding your business and hiring people, you might want to take a look at these coverages that small businesses need.
Hacking (Data) Coverage: Small businesses are likely to have lower security on their data and servers. This is why hackers target them and usually succeed in executing the attacks. These attacks usually take your customer’s information from you and end up breaking your system. In these kinds of event, your insurance company should be able to help you out.
Liability Coverage: This protects you and your business if you ever find yourself being sued by a client or a customer because of negligence, accident, injury and other causes. It can seem far-fetched but most small businesses go through these lawsuits at least once.
Employment Liability Coverage: There are times when your employees turn against you especially if they don’t like the way you run things. This coverage should protect the business owner against allegations of wrong business practices from former employees.
Business Disruption Coverage: If your business operations are disrupted because of covered perils, your insurance company will be able to cover the income loss for a specific span of time.
At Streetsmart Insurance, our mission is to ensure that we protect are clients and offer them policies that they can afford. Learn more about our products and services by calling our agency at (732) 462-8343. You can also request for a free quote by CLICKING HERE.