In 2019, the International Communication Research conducted a national survey. It established that more than 60% of home office-based businesses lacked an insurance policy that covered their businesses. Sadly, most of these home offices believed that if their companies suffered any losses, their renters, homeowners, or umbrella insurance policy would take responsibility and compensate them.
But, on the contrary, rental and umbrella policies only cover a small percentage of losses. Moreover, such provisions would not even help one replace a damaged laptop.
Consequently, there is every need for you today to register your home office with an appropriate type of insurance for your business.
This article helps you know which options are available. An insurance agent will tell you which one fits your business.
Property insurance
This type of insurance covers properties typically covered by the homeowner’s policy but held at home. However, since you use them for business, the homeowner’s insurance does not cover them, hence the need to get them the property insurance.
It includes computers, data, paperwork, and any other thing you have at home and use for your home office and theft or vandalism of any of these properties.
For instance, in the event of a fire, your homeowner’s insurance policy will compensate you for the home, but not the home office. This is where the business property insurance cover comes in handy and covers losses.
Business interruption
Sometimes, an interruption can occur and halt your business for an extensive period, interfering with cash flow and causing you significant financial losses. However, if your home office is covered with a business interruption policy, you will have nothing to worry about.
Of course, the terms might vary depending on the company you register your home business with. Still, most of them will cater to your income and help you evade negative cash flow until everything gets back to normal.
Business crime insurance
Many criminal cases characterize the modern world, and your home office is not immune to them. From time to time, home-based businesses are victimized with forgery, breaches, theft, security theft, stealing of sensitive information, and many others.
Therefore, if you have compassionate parents, information, data, systems, patents, and processes in your home business, you should consider getting business crime insurance with a company of your choice.
Workers’ compensation insurance
The other type of insurance you should consider for your home office is workers’ compensation insurance, whose terms differ across states while still caring for employees. Generally, any business, whether home-based or not, with employees must be covered with the worker’s compensation insurance.
This type of coverage takes care of employees’ liabilities, disabilities, death benefits, and treatment. But, again, since terms differ from one state to another, you need to establish your state’s provision under this insurance cover. And polish everything to ensure that you are in good books with the workers’ compensation insurance and have your employees covered.
Homeowner’s insurance.
Most people are under some form of homeowner’s insurance with a particular company of their liking. Though this may sound unlikely, some home offices lack the homeowner’s policy which provides an umbrella cover for your home. However, now that you have an office for your business, you need the homeowner’s surface more than ever.
The types of business insurance discussed above will likely cover business interruption, crime, data corruption, and any liability, but not the home. Therefore, having the homeowner’s cover will come in handy. In addition, you will be compensated for the losses, especially if you had spent a fortune building this home.
Contents insurance
Generally, contents insurance should come with the homeowner’s insurance, although some homeowner’s policies do not provide for it. In addition, when you don’t have your own home and are renting the apartment you live in. You might have to consider the contents insurance since the rental policy does not cover it. If you use the same apartment in which you live as your home office, you need the contents covered even more.
The insurance takes care of the contents in the apartment that you use for business and include paperwork, data, computer, or any other thing you deem essential for your business. In case they are stolen, damaged, or corrupted, the policy compensates you. The contents insurance also fits those who stock business equipment at home. However, they may not be using their home as a business office.
Business auto insurance
Suppose you have a car that facilitates your home business activities like making deliveries, driving clients, and attending business meetings. In that case, you will likely need to register it with the business auto insurance.
If you get involved while on a professional activity, the general auto coverage will not cater to the losses, which is why you need business auto insurance. Accidents could damage the business car, other cars, or passengers whose medical bills you must pay. Thus, making the business of auto insurance even more critical.
General liability insurance
Although this form of insurance has been mentioned last in this list, it’s, in fact, the most versatile form of business insurance you need for your home office. For example, suppose someone gets injured in your home office, or your home business product and equipment hurts him.
In that case, general liability insurance comes in handy. In addition, this insurance helps with any legal issues, including copyright infringement or lawsuits against slander and libel. Besides, this insurance cover takes care of any legal expenses you might incur when your home office is issued for any reason.
The bottom line
Many businesses are run from home currently, thanks to the technological advancements we have today. Business liabilities also increase with the many home offices in place, and crime, copyright infringement, breaches, and robbery can victimize them.
Don’t be swayed into thinking that the homeowner’s or the renter’s policy will take care of such losses. This article helps you familiarize yourself with the various forms of insurance you will need for your home business, and all you need is to contact an insurance agent to help you see which one fits your business the most.