Many home businesses are dangerously under insured. Business owners assume their existing home insurance is enough to protect their business. In fact, home insurance can leave a home business exposed to a range of liabilities. The owner of a home business looking for coverage might wonder what liabilities need to be covered. You want to be fully insured when working from home, but you do not want to pay for coverage your home policy provides. Read on to learn about the liabilities home business insurance should cover.
Business Professional Liability
As a small, home company you are at risk from lawsuit. Your company may not survive a misconduct lawsuit and disgruntled employees and customers know this. The only effective way to protect yourself is with professional liability coverage. This coverage protects you from people hurt on your property or by your products. Home coverage does offer some liability protection too, but that coverage does not include people injured on business. No business can do without professional liability coverage, especially a small home business.
Business Property Liability
Home business insurance must protect your office equipment. Your home policy may not cover office equipment destroyed in accidents. Even if it does, the payout limit will be well under what you need for replacements. If your inventory turnover is destroyed, you home policy may offer no reimbursement at all. Home business insurance should protect both your equipment and inventory. If it does not, the insurance leaves one of your biggest assets exposed.
Business Document Liability
A good home business policy should provide protections for your business documents. From articles of incorporation to patents and copyrights, these documents need special protection. Without them, you may not be able to run your business. You will need them to defend your intellectual property too. Even marketing lists and other day-to-day paperwork will be hard to replace. Your home policy will not protect them. The only way to keep them safe is with solid business document coverage.
Business Interruption Liability
Your business needs protection in case your house is destroyed. Natural disasters come when we least expect it. Your home policy will protect your personal items from such devastation. It cannot protect the health of your business though. If you lose your home in a disaster and cannot work, the lose of revenue could destroy your company. Business interruption coverage secures your business. It covers your lost revenue until you can get the company going again. This coverage lets you rebuild at your own pace, without worrying about your company. No matter what disaster befalls you, business interruption coverage ensures your company is there when it is over.
Business Vehicle Liability
If you use a personal vehicle for your work, your home business insurance needs to cover it as well. When you drive the car for business, your auto insurance is not liable. As a result, if you crash the car on business your insurance company won’t have to pay. Business vehicle coverage will protect your car while you are working. Without this coverage, you can not only get into financial trouble but legal trouble as well. Without business vehicle coverage, every time you drive your car for work you are uninsured. Just like with your home, your car needs something better now that it is a work vehicle too.
Any good home business policy should have these liabilities covered. Professional liability coverage is essential to protect you from a lawsuit. You can protect business equipment and inventory from business property liability. Business document coverage will protect your essential business papers. If you lose your home to disaster, business interruption coverage will help get your company running again. Business vehicle coverage ensures your car is always covered, even if you use it for business. With these liabilities covered in your home business policy, you can run your home company in safety.