Starting a home business is exciting. It’s a great way to make extra money or serve as your full-time job, but either way, you are the boss and in control of the project. Whether the company is just you and your dog, or you have employees, purchasing home-based business insurance is a great way to protect your investment and your future.

What is Home-Based Business Insurance?

When starting a home-based business, many people mistakenly believe that their home insurance will automatically cover their business assets, but this isn’t always the case. In addition, there are many aspects of your business, such as intellectual property, that is not covered by traditional homeowners insurance.

Home-based business insurance has a property protection component which includes physical assets, such as computers, equipment, furniture, copier, etc. Liability insurance is also important, but what you need will depend on the type of business you operate.

• General liability insurance will cover losses if a client, business associate, or employee is injured while visiting your office.
• Product liability insurance protects you from losses if the product is defective or causes harm to someone.
• Professional liability insurance is important if you provide accounting, bookkeeping, legal, or other professional services because it covers losses in the event that you made an error that caused harm to your client.

Additional Business Insurance Options

In addition to property and liability insurance, there are other types of insurance that you might want or even need to carry.

• Workers Compensation Insurance. In Florida, if you are in a construction industry you must purchase workers compensation insurance. For non-construction businesses, purchasing this insurance is only required if you have more than four employees.
• Business Income Insurance. This policy helps replace lost income if your business can’t operate due to a covered loss. For example, if your home was damaged by fire and you could not work until repairs were completed, this insurance will provide a level of income during this time.
• Data Breach Insurance. If you accept online payments, you may want to consider this insurance that covers liability expenses and respond to data loss.
• Life Insurance. You probably have a life insurance policy that protects your family, which is great. However, if you want your business to continue after you’re gone, you may want to get a second policy naming the business as the beneficiary. This income can address expenses, payroll, and hiring to keep operations running smoothly.

Depending on your business, you may also want commercial auto insurance, franchise insurance, and more.

Benefits of Insurance for Your Home Business

Business insurance will protect your home-based company’s physical and intellectual assets and shield it from liability costs in the event of a lawsuit. In addition to those benefits, having business insurance:

• Adds Credibility. The simple fact that you value your work and want to protect it sends a clear message to your customers and suppliers that you are in this for the long-term.
• Expands Potential Customer Base. Some businesses require their independent contractors, subcontracts, and suppliers to carry business insurance regardless of their size. If you want to break into new market levels, business insurance can help you get there.
• Expands Potential Supplier Base. Some suppliers will not enter into long-term contracts with uninsured businesses for fear of being left unpaid if the company closes. With insurance, you can enter into these contracts with confidence and often receive lower pricing in the process.
• Attracts Investors. If you value your company enough to ensure it, investors are more likely to consider it for funding. Capitalize on your unique company by attracting investors who can help it grow to a new level.

As a home-based business owner, purchasing business insurance is an investment in your future and serves multiple purposes. There are many options in the types and levels of coverage. Rather than struggling to determine what is best for your business, let the experts at Alliance help you sort this out. We represent the best insurance companies in the state and can help you select the best choice for your needs or give you comparisons to consider.