Does Your Home-Based Business Need Insurance?

When you run a business from home, you may rely on your homeowner’s insurance to cover potential losses. However, if business equipment, inventory, or supplies are stolen or damaged in a flood or fire, a home policy will not pay to replace these items. Before investing capital in a home office, make sure you budget for these essential business insurance policies.

Business Auto Insurance

When you or employees drive for business purposes, both drivers and vehicles should be covered by a dedicated business auto insurance policy. If you are driving your personal vehicle for a business delivery or to a meeting and you have an accident, your personal auto policy will not cover injuries and damages.

Business Property Insurance

This type of policy covers loss, theft, or damage to company property, whether these items are stored at your home workspace or in a traditional office setting. Plan to purchase a policy that covers the replacement value of computers, printers, fax machines, smartphones, supplies, equipment, and inventory.

General Liability Insurance

If you see clients at your home office, general liability insurance will cover associated damages in the event of a slip and fall accident or similar incident at your property. Even injuries to a courier who delivers a package to your business would not be covered under your homeowner’s policy.

Product Liability Insurance

Coverage for product liability is required only if your business designs, creates, or distributes tangible products. This type of policy covers injury or property damage that is caused by products associated with your company, whether you manufactured the item or sold a faulty item made by another supplier.

Professional Liability Insurance

If you are a lawyer, health care provider, accountant, or another professional who provides services from your home office, you need this type of policy to cover negligence claims. For example, if you are a consultant, a client could file a lawsuit claiming your advice harmed his or her business and these costs, including your legal defense and any court-ordered settlement, would be covered by a professional liability policy.

Having the right coverage protects the investment you’ve made in your small business. Focus1 Insurance Group helps clients in Portland and surrounding areas get the coverage they need for their business, home, car, and more. Call 541-772-3120 or request a quote online to get started today.