5 Essential Types of Insurance You Need When Running a Business From Home

Setting up a home-based business is a fantastic way of generating additional income.

And in today’s digital world, it has never been easier to run a business from the comfort of your own four walls. You can offer services online or sell your products in virtual marketplaces.

However, it’s essential to make sure that your business is properly protected. That means getting the right kinds of insurance.

Here are five types of business insurance that you might need for your home-based business.

Business Property Insurance

To start with, you need business property insurance if you use any kind of equipment in your business.

This can range from your computer and printer to more specialized machines, such as sewing machines, woodworking machines, or pottery spinners.

Typically, these are not included in regular homeowners’ insurance.

For instance, if you sell handmade ceramics online and your kiln catches fire because of an electrical failure, business property insurance will help you cover the costs of the resulting damage.

Business Automobile Insurance

If you use your vehicle to make deliveries for your business or to visit clients, you need business automobile insurance.

Personal auto policies don’t cover business uses, so if you are involved in an accident while making a delivery, you could face administrative difficulties or potentially ruinous costs.

General Liability Insurance

Next up, general liability insurance protects you if you welcome visitors into your home for business purposes. These could be colleagues or clients.

If they get injured while on your property — for example, by tripping over badly secured carpets – you might be liable for damages. In that case, general liability insurance covers you.

Product Liability Insurance

Do you manufacture products as part of your home-based business? Then you need product liability coverage.

This type of insurance will protect you if anyone gets hurt as a result of using your product or if their property is damaged because of it.

For example, if someone suffers burns because the handle of a hand-potted soup terrine that you sold them suddenly comes off, product liability insurance can be your saving grace.

Professional Liability Insurance

Finally, if your home-based business offers services such as consulting or coaching, you should consider professional liability insurance.

If any of your clients try to bring claims against you for negligence or failure to deliver, this type of liability insurance has your back.

For instance, if you freelance as a financial consultant and give a client advice that leads to them making a bad investment, they could try to hold you responsible. Professional liability insurance can help you deal with such claims.

Final Thoughts

Making sure that your home-based business is properly insured is essential.

Otherwise, you might be facing ruinous expenses as a result of unfortunate accidents or claims from dissatisfied clients.

With the right kind of business insurance, you can put these worries out of your mind and focus on what you do best — running your successful home business.

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