Jul 28

If you are running a small business from your home, don’t be fooled into thinking that your homeowner’s insurance covers your business as well. If you consult your policy you will almost certainly find that property used for business purposes is excluded from insurance coverage. Homeowner’s insurance is exactly that—it is intended to cover houses that being used as homes and nothing more. Therefore if you have a business housed within your home, you need to buy business liability insurance.

To begin, make a list of everything in your house that you use as a part of your business. That is your business property. If you use a separate building such as a finished garage for your office, then that building will need to be covered too. You may call your homeowner’s insurance company to see if they offer business liability insurance as well. If they do you can get a discount for carrying more than one type of policy with them.

Look up statistics on your type of business to see how often they have been sued in the past. This can help you get an idea of what kinds of insurance you need. You can consult with an accountant, an insurance broker or an attorney about how much insurance you need for adequate coverage. If you sell a product, then product liability insurance will protect you from claims relating to harm from its use. If you perform services on other people’s property then you need commercial general liability insurance to cover any damage you might accidentally inflict to it. You may need coverage for your advertising business , for potential injury to customers who are on your property, or from other things that haven’t occurred to you. As with all kinds of insurance, there will be a variety of policies to choose from, each its own price tag.

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