Many people who run their business from their homes think the home insurance will also protect their business. However, that is not the case. You'll need a separate insurance policy that will cover your business and protect it from business-related accidents as well as damages and loss.
In this post, New Wave Insurance will share all the basics that you need to know about business insurance for home-based businesses:
What Is Covered by Home Business Insurance?
This insurance policy covers your business-related expenses such as tools, equipment, inventory, and other property. It will also cover the value of your business' stock. On top of that, it protects your business from business-related accidents and from any liability claims that may arise from your business.
What Types of Home Business Insurance Do You Need to Get?
Many business owners assume that one business insurance policy will be enough since their home is also protected with their homeowners' insurance. However, this is not the case. You will need a policy that will cover your business and its risks separately.
There are three types of business insurance for home-based businesses that you need to consider:
BOP or Business Owners Policy
This is the most common type of business insurance for home-based business owners. It covers the business' property, equipment, inventory, and valuable business records. It also covers the business' liability and theft protection.
Umbrella Liability Insurance
Umbrella insurance is designed to provide additional liability protection for the business owner, covering all other property-related damages in case of lawsuits.
Commercial Property Insurance
This type of insurance will cover the building and its contents. The building includes the business' office, warehouse, printing press, or any other location where the business is operated.
Can Home Insurance and Business Insurance Be Combined?
Yes, if you have a BOP or combined policy, it will cover both your home and business. It will provide you with personal property coverage and business property insurance.
This type of policy is ideal for a home-based business that has little to no inventory or valuable equipment since it will cover both the company and owner's property within the home.
Should You Get the Cheapest Home Business Insurance Policy Available?
This is a big question that many business owners ask. However, the answer is simple. It's better to hire a professional insurance company to help you decide which policy and coverage are the best for your business.
In order to do this, they will conduct a thorough home business insurance assessment to evaluate the risk factors and determine the amount of money you will need to cover.
They will look at the risks that your business faces and the types of property and equipment it possesses, your business overhead costs, and the industry it operates in.
This way, you can get the policy that will provide you with all the coverage you need and will fit your budget.
How Do You Make a Claim?
When it comes to making a claim, there are two ways. You can either make a claim in person or make it online.
However, if you want to claim in person, you will need your Insurance Card and Policy Number. If you made a claim online, you would need to upload your proof of loss and your tax ID.
Home-based business owners are often under the impression that their homeowners' insurance policy will provide them with all the coverage they need. However, this is not the case.
As a home-based business owner, you need to get a separate business insurance policy that will specifically protect your business.
If you are looking for a reliable business insurance company on the Gold Coast that can help you determine what policy is right for your home-based business, get in touch with New Wave Insurance. We can help you find the right coverage that will fit your business and protect it from any liability claims or business-related accidents while also helping you save money in the process.