A recent study showed that many business owners do not have the proper business insurance coverage to protect their assets if a catastrophe occurs. Without the proper business insurance coverage, your personal assets are at risk if your business suffers a major loss. If you operate your business while working out of your home office, you need additional coverage. Contrary to popular belief, your work from home business is not covered under your home insurance policy. To properly secure the future of your business, you need business from home insurance.
● The Emergence of Insurance for Business at Home
According to the U.S. Census Bureau, more than 14 million small businesses are operated from home. Millions of freelance workers work from home every day. Despite so many people working from home, the amount of underinsured work from home businesses is staggering. Without business from home insurance, you are at risk if your home office is destroyed, wherein your home insurance policy will not fully cover the loss. You also have to think about how much it will cost you to replace your equipment and data if an accident happens.
If you have sensitive data stored on your cloud and a security breach occurs, you may face potential litigation if one of your customers decides to sue for damages. Without insurance for business at home, you could lose your business and personal assets. Having a smaller business makes you an easy target for a lawsuit. Make sure that you have coverage so that you can prepare yourself for a worst-case scenario.
● Business Owner’s Policy
A Business Owner’s Policy (BOP) can provide comprehensive coverage for your work from home business. Business Owner’s Policy protects you against potential malpractice lawsuits. You are also covered if your business suffers a security breach that compromises data and causes you to shut down for a few weeks. You can add business interruption coverage so that you won’t lose a lot of income while your business is being repaired. A BOP is essential if you operate some aspects of your business outside your home office.
● Homeowners’ Rider
You can add a rider to your homeowners’ policy so that you will have some coverage against business-related accidents. Keep in mind that riders are normally inexpensive. However, without a rider, you will still have a gap in your coverage that could leave you exposed to a potential liability issue. You may need to consider adding umbrella insurance so that you can have comprehensive coverage if a disaster arises.
● Errors & Omission Insurance
Errors & Omission insurance can help cover your legal expenses if you are involved in a legal dispute over poor work, an oversight, or several missed deadlines. The coverage protects you if one of your clients alleges that you made a serious mistake that negatively impacted them.
If you are operating your business from your home, you need home-based business insurance. The policy will help you secure your business’s future without putting your personal assets at risk if something goes wrong. Are you looking for an affordable business insurance policy? Contact the experts at First Insurance Solutions today. We look forward to assisting you with all your insurance needs.